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12 April 2021
Wisconsin Man Pleads Guilty to COVID-Relief FraudRead the Press Release
A Wisconsin man pleaded guilty today for his role in fraudulently obtaining over $600,000 in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, Stephen Smith, 42, of Milwaukee, admitted that he fraudulently sought, on behalf of three different companies, over $600,000 in PPP loans through applications to an insured financial institution. According to his plea agreement, Smith caused fraudulent loan applications to be submitted that made numerous false and misleading statements about the companies’ respective payroll expenses. Smith then directed his co-conspirators to send him portions of the PPP funds within days of receiving them and used the proceeds for personal expenses.
Smith pleaded guilty to bank fraud. He is scheduled to be sentenced on July 14, and faces a maximum penalty of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Richard G. Frohling of the Eastern District of Wisconsin; Special Agent in Charge Sharon Johnson of the Small Business Administration’s Office of Inspector General (SBA-OIG) Central Region; Special Agent in Charge Robert E. Hughes of the FBI’s Milwaukee Field Office; Special Agent in Charge John Crawford of the Federal Deposit Insurance Corporation – Office of Inspector General (FDIC-OIG); and Acting Special Agent in Charge Tamera D. Cantu of the IRS Criminal Investigation (IRS-CI) Chicago Field Office made the announcement.
The SBA-OIG, FBI, FDIC-OIG, and IRS-CI are investigating the case.
Trial Attorneys Laura Connelly and Leslie S. Garthwaite of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Stephen Ingraham of the Eastern District of Wisconsin are prosecuting the case.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding, and in December 2020, Congress authorized another $284 billion in additional funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses for payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The Fraud Section leads the Justice Department's prosecution of fraud schemes that exploit the CARES Act. In the months since the CARES Act was passed, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP and EIDL funds, as well as numerous real-estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/cares-act-fraud.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department's National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Westerville woman sentenced to more than five years in federal prison for robbery & attempted robbery at four storesRead the Press Release
COLUMBUS, Ohio – A Westerville woman was sentenced in U.S. District Court today to 63 months in prison for robbery and attempted robbery.
Amy L. Hugo, 39, committed or attempted robbery at three gas stations and a store in Westerville and near Polaris Shopping Place. Hugo committed the robberies in a span of eight days in December 2019 and January 2020 using fake handguns at each of the robberies.
According to court documents, Hugo robbed the BP Gas Station on W. Main Street in Westerville on New Years Eve 2019. Hugo used a fake handgun and demanded cash from the register, ultimately stealing $175.
On Jan. 2, 2020, Hugo stole $564 from the Play It Games, Movies & Music store on E. Powell Road in Lewis Center.
Hugo committed one robbery and attempted another on Jan. 7, 2020. During the first robbery, she stole $80 from the Duchess Shoppe Gas Station on Sancus Blvd. During the second event, she attempted to rob the Shell Gas Station on Polaris Parkway. The Shell store clerk thought Hugo’s gun looked fake, so the clerk locked herself in the gas station office and called 911. Hugo fled the store without stealing any money.
Hugo was charged by a Bill of Information in September 2020 and pleaded guilty in October 2020.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Delaware County Sheriff Russell Martin; Westerville Police Chief Charles Chandler and Columbus Interim Police Chief Michael Woods announced the sentence imposed by U.S. District Court Judge Sarah D. Morrison. Assistant United States Attorney Salvador A. Dominguez is representing the United States in this case.
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Weapons Smuggler Sentenced to over Six Years and Fined More Than $10,000Read the Press Release
TUCSON, Ariz. – Last week, Ruben Arnulfo Chavarin, 31, of Tucson, Arizona, was sentenced by U.S. District Judge John C. Hinderaker to 78 months in prison and fined $10,307.20. Chavarin previously pleaded guilty to smuggling firearms and ammunition from the United States into Mexico.
On fourteen occasions between December 2010 and February 2011, Chavarin purchased eight firearms and over 21,000 rounds of ammunition in Tucson. He provided the firearms and 12,525 rounds of ammunition to co-conspirators to be smuggled out of the United States and into Mexico. On February 11, 2011, Chavarin attempted to personally smuggle 8,700 rounds of ammunition into Mexico, but was apprehended and arrested at the Port of Entry in Douglas, Arizona. Subsequent investigation revealed that shortly before his arrest, Chavarin had ordered sixteen AK-47 style rifles and 10,000 rounds of ammunition, which he also intended to smuggle into Mexico.
While under indictment for seven weapons trafficking offenses, Chavarin fled to Mexico, where he remained a fugitive for nine years until his arrest in 2020.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation in this case. Angela W. Woolridge, Assistant U.S. Attorney, District of Arizona, Tucson handled the prosecution.
CASE NUMBER: 11-0922-001-TUC-JCH
RELEASE NUMBER: 2021-025_Chavarin# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Verona Teen Sentenced to Prison for Role in DS44 Gang’s Drug TraffickingRead the Press Release
PITTSBURGH, PA -- A resident of Verona, PA, has been sentenced in federal court to 15 months of imprisonment followed by two years of supervised released on his conviction of conspiracy to distribute and possess with intent to distribute a quantity of fentanyl and heroin, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge William S. Stickman IV imposed the sentence on Roderick Ferguson, age 19.
According to information presented to the court, Ferguson was a part of an investigation targeting the Darccide/Smash 44 or DS44 neighborhood gang and its drug trafficking activity, in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, from approximately February of 2019 through June of 2019, the United States received authorization to intercept communications on nine telephones as part of the investigation.
Intercepted communications revealed that Roderick Ferguson was involved in the distribution of heroin and fentanyl, including serving as a runner for co-conspirator Christopher Highsmith.
Assistant United States Attorneys Brendan J. McKenna and Carolyn J. Bloch prosecuted this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
U.S. Attorney Sues Nashua Landlord for Alleged Violation of the Fair Housing ActRead the Press Release
CONCORD – Acting U.S. Attorney John J. Farley announced today that the United States filed a lawsuit on Friday against John J. Flatley d/b/a John J. Flatley Company (Flatley), and a property manager employed by Flatley, for violating the Fair Housing Act. The United States alleges that Flatley discriminated against a tenant by refusing to allow a reasonable accommodation of the tenant’s disability when the tenant sought to have an emotional support dog.
As alleged in the complaint, the tenant leased an apartment in Nashua, which is owned by Flatley. The tenant, who was diagnosed with anxiety and depression, had used a dog for emotional support for several years. After the tenant requested permission to have an emotional support animal at the apartment, Flatley and the property manager indicated that they would permit the tenant to have an emotional support animal, but not a dog. The complaint alleges Flatley would not permit tenants to have dogs as emotional support animals.
The tenant filed an administrative complaint with the U.S. Department of Housing and Urban Development (HUD). Upon investigation, HUD determined that there was reasonable cause to believe that the Fair Housing Act had been violated. The tenant elected pursuant to the Fair Housing Act to have HUD’s determination resolved in federal court.
In these circumstances, the Fair Housing Act authorizes the Justice Department to commence an action in U.S. District Court on behalf of the tenant. The complaint seeks declaratory, injunctive, and monetary relief for the tenant.
“The Fair Housing Act serves to provide equal opportunity to individuals with disabilities by obligating landlords to provide tenants with reasonable accommodations,” said Acting U.S. Attorney John Farley of the District of New Hampshire. “One commonly-needed accommodation for an individual with a disability is access to an assistance animal, such as a service animal or a support animal. In order to protect the rights of individuals with disabilities and prevent discrimination, we will not hesitate to pursue litigation to enforce the Fair Housing Act and other federal civil rights laws.”
“Many individuals with different types of disabilities rely on assistance animals to maintain their independence and fully enjoy the place they call home,” said HUD’s Acting Assistant Secretary Jeanine Worden. “HUD applauds today’s action and will continue working with the Justice Department to ensure that housing providers meet their obligation to comply with the reasonable accommodation requirements of the Fair Housing Act.”
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. Individuals who believe that they have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, email the Justice Department at [email protected] or contact HUD at 1-800-669-9777.
The case is being handled by Assistant U.S. Attorney Raphael Katz.
The complaint is an allegation of unlawful conduct. The allegations must still be proven in federal court.
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U.S. Attorney and IRS Warn Potential Tax Cheats to Timely File Accurate and Complete Tax ReturnsRead the Press Release
HARRISBURG - With the deadline for filing federal individual income tax returns having been extended to May 17th, 2021, and taxpayers now preparing to file their tax returns, the U.S. Attorney’s Office for the Middle District of Pennsylvania, and the Philadelphia Field Office, IRS Criminal Investigation Division, jointly announced a warning to those who are thinking about breaking the law by committing tax crimes. Willfully filing false tax returns or deliberately evading paying taxes are serious criminal offenses and can result in prison and substantial fines and penalties.
“Supreme Court Justice Oliver Wendell Holmes famously stated that taxes are what we pay for a civilized society and those words are even engraved on the exterior of the IRS building in Washington D.C.,” stated Acting U.S. Attorney Bruce D. Brandler. Those who fail to pay their fair share of taxes not only cheat the government out of much needed revenue that finances our military, health programs, and public works projects, but also cheat their fellow citizens who are forced to carry more than their share of the burden. Our office will vigorously prosecute any individual or business that willfully violates our tax laws.”
“Tax fraud schemes, such as employment tax fraud, refund fraud, and identity theft harm everyone,” said IRS Special Agent in Charge Thomas Fattorusso. “These schemes serve no purpose except to defraud the IRS and the American Public. Would-be tax cheats are reminded that IRS-CI uses all its investigative tools to uncover and put a stop to such fraud.”
Throughout the past year, the U.S. Attorney’s Office prosecuted a broad array of tax offenses including tax evasion, employment tax fraud, and refund fraud. Enforcement efforts are continually ongoing. Here are a few recent examples:
Tax Evasion
- On March 5, 2021, a 54-year-old Old Forge man was sentenced to three years of probation and ordered to pay $117,370 in restitution for tax evasion. Christopher Jones failed to report over $500,000 in taxable income between 2014 and 2019 to avoid paying federal income taxes. Jones failed to report income he gained from illegal bookmaking activities and made false statements to federal agents in February 2019 during the investigation. The judge noted that but for COVID, Jones would have had to serve prison time, but his medical conditions placed him at high risk.
Prosecution of Business Owners
- On January 27, 2021, Lynn and Richard Mineo of Old Forge, Pennsylvania, pled guilty to tax evasion. The Mineos, who are husband and wife, failed to report a total of $550,469.92 in income between tax years 2014 ($145,205), 2015 ($169,346), 2016 ($153,749), and 2017 ($82,168). The income was for the Mineos’ business, a beer retail store called Mineo’s Brewer’s Outlet, located in Dunmore, Pennsylvania.
- On February 23, 2021, a 36-year-old Harrisburg man was sentenced to two years of probation and ordered to pay $360,897.86 in restitution for conspiring to defraud the United States by failing to pay employment taxes. Darasomalee Thach co-owned and operated a temporary staffing company in Harrisburg and failed to withhold and pay employment taxes from 2011 through 2015, in order to maximize his personal profit.
- On March 5, 2021, Matthew Forney of Camp Hill, was sentenced to one year and one day imprisonment and ordered to pay a $40,000 fine, and Kim Forney, of Windsor, was sentenced on March 4, 2021, to one year imprisonment, for failing to include earnings made through their business on their federal income tax returns for the years 2014 through 2017. The Forneys deposited checks from their business sales into the business bank account, which was reported as taxable income on their tax returns, along with credit card sales. However, the Forneys retained any cash from their business sales at their residence. The Forneys did not report this cash as taxable income on their tax returns or pay taxes on these monies. The unreported income for these years totaled $817,713, which resulted in $292,066 in unpaid taxes.
- On March 31, 2021, Andrea and Guiseppe Tomasino, co-owners of Tomasino’s Restaurante Italiano, located in Dallas, Pennsylvania, pled guilty to failing to collect and pay required federal payroll taxes. Andrea and Guiseppe Tomasino, who were responsible, as co-owners of Tomasino’s Restaurant Italiano, for collecting and paying to the Internal Revenue Service federal payroll taxes, including Federal Insurance Contribution Act (FICA) taxes, willfully failed to pay to the IRS these required taxes for a period from the first quarter of 2014 through the first quarter of 2019, in the total amount of $95,710.
Stolen Identity Refund Fraud
- On March 9, 2021, a 38-year-old Allentown woman was sentenced to 75 months’ imprisonment for conspiring to defraud the government between January 2015 to July 2016. Marien Torres-Acevedo and her conspirators obtained fraudulent U.S. Treasury checks by stealing victims’ identities and using those stolen identities to file false tax returns that generated significant refunds. Torres-Acevedo and her conspirators then secured the fraudulent U.S. Treasury checks and cashed them at various check cashing businesses, including several in Pennsylvania. Torres-Acevedo admitted that between $550, 000 and $1.5 million in losses occurred as a result of the criminal activity. Torres-Acevedo was ordered to pay $857,729.65 in restitution.
- On April 1, 2021, a 44-year-old Allentown man was sentenced to 70 months’ imprisonment for conspiring to defraud the government and for committing aggravated identity theft. Julio Polanco Suarez and his conspirators obtained fraudulent U.S. Treasury checks by stealing victims’ identities and using those stolen identities to file false tax returns that generated significant refunds. The conspirators then secured the fraudulent U.S. Treasury checks and cashed them at various check cashing businesses, including several in Pennsylvania. Suarez admitted that between $1.5 million and $3.5 million in losses to the U.S. Treasury occurred as a result of the criminal activity. Suarez was also ordered Suarez to pay $1,189,256.50 in restitution. Coconspirators received sentences ranging from three years’ probation to 75 months’ imprisonment. Suarez faces deportation at the conclusion of his sentence of imprisonment.
Fraudulent FormsOn March 26, 2021, Eric Judkins pled guilty to conspiracy to defraud the Internal Revenue Service. Judkins and his co-defendant, Larry Benavides and others, ran a scheme between January 2011 and October 2012, at USP Allentown in which they would fill out fraudulent IRS Forms 1040EZ to claim refunds. The scheme also included selling completed forms to other inmates for a price, after which Judkins and Bernavides would pocket the money and the inmate would claim the bogus refund himself. From early 2011 until 2012, approximately 80 false returns were filed with the IRS on behalf of multiple inmates. Judkins directed that the refunds be sent to individuals outside of prison which involved setting up individuals outside of prison as Powers of Attorney so that they could cash the checks and deposit the money into the inmates’ commissary accounts. Searches of the inmates’ cells resulted in recoveries of IRS forms. The total amount of refunds claimed by the conspiracy was $108,855 of which Judkins or individuals directed by Judkins claimed $11,031.37. The total amount of refunds issued by the IRS was $26,735, of which $7,194 went to Judkins and his direct associates. Benavides previously pleaded guilty in the Western District of Pennsylvania and is awaiting sentencing.
Tax Scam Warning
The U.S. Attorney’s Office and the IRS remind tax payers to exercise caution during tax season to protect themselves against tax schemes ranging from identity theft to return preparer fraud. Illegal scams can lead to significant penalties and interest and possible criminal prosecution. IRS Criminal Investigation works closely with the Department of Justice to shutdown scams and to prosecute the criminals behind them. The IRS would like to warn taxpayers of a quickly growing scam involving a phone scam whereby criminals fake calls from the Taxpayer Advocate Service (TAS), an independent organization within the IRS.
Similar to other IRS impersonation scams, thieves make unsolicited phone calls to their intended victims fraudulently claiming to be from the IRS. In this most recent scam variation, callers “spoof” the telephone number of the IRS Taxpayer Advocate Service office in Houston or Brooklyn. Calls may be ‘robo-calls’ that request a call back. Once the taxpayer returns the call, the con artist requests personal information, including Social Security number or individual taxpayer identification number (ITIN).
TAS can help protect your taxpayer rights. TAS can help if you need assistance resolving an IRS problem, if your problem is causing financial difficulty, or if you believe an IRS system or procedure isn’t working as it should. TAS does not initiate calls to taxpayers “out of the blue.” Typically, a taxpayer would contact TAS for help first, and only then would TAS reach out to the taxpayer.
In other variations of the IRS impersonation phone scam, fraudsters demand immediate payment of taxes by a prepaid debit card or wire transfer. The callers are often hostile and abusive. Alternately, scammers may tell would-be victims that they are entitled to a large refund but must first provide personal information. Other characteristics of these scams include:
- Scammers use fake names and IRS badge numbers to identify themselves.
- Scammers may know the last four digits of the taxpayer’s Social Security number.
- Scammers spoof caller ID to make the phone number appear as if the IRS or another local law enforcement agency is calling.
- Scammers may send bogus IRS emails to victims to support their bogus calls.
- Victims hear background noise of other calls to mimic a call site.
- After threatening victims with jail time or with, driver’s license or other professional license revocation, scammers hang up. Others soon call back pretending to be from local law enforcement agencies or the Department of Motor Vehicles, and caller ID again supports their claim.
Here are some things the scammers often do, but the IRS will not do. Taxpayers should remember that any one of these is a tell-tale sign of a scam.
The IRS will never:
- Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer. Generally, the IRS will first mail a bill to any taxpayer who owes taxes.
- Threaten to immediately bring in local police or other law-enforcement groups to have the taxpayer arrested for not paying.
- Demand that taxes be paid without giving taxpayers the opportunity to question or appeal the amount owed.
- Ask for credit or debit card numbers over the phone.
- Call about an unexpected refund.
For taxpayers who don’t owe taxes or don’t think they do:
- Please report IRS or Treasury-related fraudulent calls to [email protected] (Subject: IRS Phone Scam).
- Do not give out any information. Hang up immediately. The longer the con artist is engaged; the more opportunity he/she believes exists, potentially prompting more calls.
- Contact TIGTA to report the call. Use their IRS Impersonation Scam Reporting web page. Alternatively, call 800-366-4484.
- Report it to the Federal Trade Commission. Use FTC.gov. Please add "IRS Telephone Scam" in the notes.
For those who owe taxes or think they do:
- Call the IRS at 800-829-1040. IRS workers can help.
- View tax account online. Taxpayers can see their past 24 months of payment history, payoff amount and balance of each tax year owed.
Stay alert to scams that use the IRS or other legitimate companies and agencies as a lure. Tax scams can happen any time of year, not just at tax time. For more information visit Tax Scams and Consumer Alerts on IRS.gov.
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Two men indicted in death of Fort Stewart soldier found stabbed to death in installation housingRead the Press Release
SAVANNAH, GA: Two former soldiers have been indicted in U.S. District Court alleging a murder conspiracy after another soldier was found dead in his barracks room in June 2020.
In a newly unsealed federal indictment, Byron Booker, 28, of Ludowici, Ga., and Jordan Brown, 21, of St. Marys, Ga., are charged in the death of Specialist Austin J. Hawk, 24, at Fort Stewart Military Reservation, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia.
Booker is charged with Premeditated Murder, and Murder of a Member of the U.S. Uniformed Services. In addition, both Booker and Brown are charged with Felony Murder; Conspiracy to Commit Assault Upon a Member of the U.S. Uniformed Services and to Commit Burglary; Assault Upon a Member of the U.S. Uniformed Services; Burglary; Conspiracy to Retaliate Against a Witness; and Retaliation Against a Witness. The statutory penalty for each of the murder charges upon conviction is death, or mandatory life in prison.
There is no parole in the federal system.
“It is a high priority for our office to pursue justice for members of the military who are victims of violent crime,” said Acting U.S. Attorney Estes. “We commend the FBI and the U.S. Army Criminal Investigation Command and other law enforcement partners for their tireless and detailed work on this case.”
The 21-page indictment alleges that Booker and Brown conspired to commit the offenses against Hawk in retaliation for Hawk reporting Booker to U.S. Army leadership for “poor leadership, poor military performance, and maltreatment of subordinates” prior to Booker’s discharge from the U.S. Army, and in retaliation for Hawk reporting Brown for drug use during his service.
The indictment further alleges that Booker and Brown discussed “silencing” Hawk, and discussed Brown providing Booker with a key to access Hawk’s room. The indictment alleges that Booker drove from his home on or about June 17, 2020, to Fort Stewart, and entered the installation on foot before walking approximately one mile to Hawk’s barracks. The indictment then alleges that Booker killed Hawk by “stabbing, cutting, and slashing” him with an edged weapon, and that afterward Booker disposed of the clothing and shoes he was wearing at the time.
Booker has been in custody since June 18, 2020; Brown was taken into custody after a U.S. District Court grand jury returned the indictment during its April 2021 term. Both defendants await further legal proceedings.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
U.S. Army Criminal Investigation Command and the FBI are investigating the case, which is being prosecuted for the United States by Southern District of Georgia Assistant U.S. Attorneys Jennifer G. Solari and Frank Pennington, and Special Assistant U.S. Attorney Darron J. Hubbard.
Two Plead Guilty in COVID-19 Unemployment Benefit Fraud SchemeRead the Press Release
FRESNO, Calif. — Jason Vertz, 51, of Fresno, and Alana Powers, 45, an inmate at the Central California Women’s Facility (CCWF) in Chowchilla, each pleaded guilty today to one count of conspiracy to commit mail fraud and one count of aggravated identity theft in a scheme that targeted California Employment Development Department (EDD) unemployment insurance benefits that were intended for Californians hit hardest by the ongoing COVID-19 pandemic shutdown, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Vertz and Powers submitted several fraudulent unemployment insurance claims in Powers’ and other CCWF inmates’ names to EDD. Recorded jail calls and emails show that Powers and other inmates provided names, dates of birth, and social security numbers for inmates at CCWF to Vertz to submit the fraudulent claims. Shortly thereafter, the benefits were loaded onto debit cards that were mailed to the addresses the defendants provided.
The underlying applications for the claims stated that the inmates had worked within the prescribed period as maids, cleaners, fabrication welders, and other occupations, and that they were available to work, which was not true because they were incarcerated. The claims would have been denied if accurate answers had been given. EDD and the United States have suffered an actual loss of over $103,000 as a result of the fraud.
This case is the product of an investigation by the Federal Bureau of Investigation, the California Department of Corrections and Rehabilitation Investigative Services Unit, and the California EDD. Assistant U.S. Attorneys Alexandre Dempsey and Joseph Barton are prosecuting the case.
Vertz and Powers are scheduled to be sentenced by U.S. District Judge Dale A. Drozd on July 6. For the count of conspiracy to commit mail fraud, Vertz and Powers face a maximum statutory penalty of 20 years in prison and a $250,000 fine. For the count of aggravated identity theft, they face a mandatory two-year sentence consecutive to any other sentence. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Tulsa Couple Plead Guilty to Bank Fraud After Applying for Paycheck Protection Program Loans under False PretensesRead the Press Release
A Tulsa couple who fraudulently applied for Paycheck Protection Program forgivable loans guaranteed by the Small Business Administration under the Coronavirus Aid, Relief, and Economic Security (CARES) Act pleaded guilty in federal court, announced Acting U.S. Attorney Clint Johnson.
Ibanga Etuk, 41, pleaded guilty to one count of bank fraud and one count of aggravated identity theft on April 9. Teosha Etuk, 33, pleaded guilty to one count of bank fraud on April 6.
“Ibanga and Teosha Etuk exploited the COVID-19 pandemic to steal taxpayer-funded resources from small businesses, and because of this, they are now convicted felons,” said Acting U.S. Attorney Clint Johnson. “The Coronavirus Anti-Fraud Team and our partners at the Small Business Administration, Federal Reserve Board and FBI remain committed to protecting the integrity of critical resources provided by Congress to assist the American people.”
Ibanga Etuk admitted that from April 6, 2020, to April 29, 2020, he knowingly applied for a Paycheck Protection Program loan from Frontier State Bank under false pretenses. The defendant lied about the number of people employed during the previous months of purported operations, the payroll expenditures during the previous months, taxes paid during previous months of operation, ownership of the business, and relationships between the parties in a $300,000 loan application submitted for Ab0veAll Business Inc.
Ibanga Etuk further admitted that during the same time he unlawfully used another individual’s identity on payroll records submitted to Frontier State Bank when he applied for the $300,000 loan.
Teosha Etuk admitted that from April 14, 2020, to April 29, 2020, she fraudulently applied for a Paycheck Protection Program loan through First Liberty Bank. Specifically, she lied about the number of people employed during the previous months of purported operations, the payroll expenditures during the previous months, taxes paid during previous months of operation, ownership of the businesses and relationships between the conspirators in a loan application for $150,000 for the company TMARK Enterprises, Inc.
Also charged in the indictment is Olusolo Ojo, 42, of Owasso. Ojo is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
According to the indictment, the Etuks created 12 fictitious business entities that would fraudulently apply for Paycheck Protection Program (PPP) loans. During this time, Ibanga Etuk and Teosha Etuk submitted multiple applications for the same businesses to more than ten different banks, without disclosing to those banks that they were submitting duplicative applications. They conspired to obtain loans in the approximate amount of $5,430,585 and actually obtained funding from banks in the total approximate amount of $995,385.
The Board of Governors of the Federal Reserve System and Bureau of Consumer Financial Protection Office of Inspector General; Small Business Administration Office of Inspector General; and FBI are the investigative agencies. Assistant U.S. Attorneys Kristin Harrington and Victor A.S. Régal are prosecuting the case.
In March 2020, Congress passed a $2.2 trillion economic relief bill known as the Coronavirus Aid, Relief, and Economic Security (CARES) Act designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. Anticipating the need to protect the integrity of these taxpayer funds and to otherwise protect Americans from fraud related to the COVID-19 pandemic, the Department of Justice immediately stood up multiple efforts dedicated to identifying, investigating, and prosecuting such fraud. Leveraging data analysis capabilities and partnerships developed through its vast experience combatting economic crime and fraud on government programs, the Justice Department’s response to COVID-19 related fraud serves as a model for proactive, high-impact white-collar enforcement. This rapid and nationwide response enabled the Justice Department to quickly ensure accountability for wrongdoing amid a national crisis and sent a forceful message of deterrence during an ongoing crisis.
The Department of Justice has publicly charged 474 defendants with criminal offenses based on fraud schemes connected to the COVID-19 pandemic. These cases involve attempts to obtain over $569 million from the U.S. government and unsuspecting individuals through fraud and have been brought in 56 federal districts around the country. These cases reflect a degree of reach, coordination, and expertise that is critical for enforcement efforts against COVID-19 related fraud to have a meaningful impact and is also emblematic of the Justice Department’s response to criminal wrongdoing.
To learn more about the Justice Department’s COVID response, visit: https://www.justice.gov/coronavirus For further information on the Criminal Division’s enforcement efforts on PPP fraud, including court documents from significant cases, visit the following website: https://www.justice.gov/criminal-fraud/ppp-fraud. For further information on the Civil Division’s enforcement efforts, visit the following website: https://www.justice.gov/civil.
To report a COVID-19-related fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) by calling the NCDF Hotline at 1-866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
Three Metro East Men Facing Federal Bank Fraud ChargesRead the Press Release
East St. Louis, Ill. – Lagardo Wright, 20, and Aijeigh McShan, 19, of Fairview Heights, Illinois, and a third man, Cedric Sheard, Jr., 20, of Belleville, Illinois, have been charged in a six- count federal indictment with bank fraud and conspiracy to commit bank fraud. Wright and
McShan were arraigned earlier today following their arrest in California last month.
Sheard’s arraignment was previously held on February 25, 2021.
According to the indictment, Wright, McShan, and Sheard obtained bank account information, including online usernames, passwords, and PIN numbers, by soliciting individuals on social media and elsewhere to provide their personal banking information in exchange for the promise of money. Wright allegedly accessed the individuals’ bank accounts to check their account balances and withdrawal limits. The indictment alleges that Wright, McShan, and Sheard, would then deposit counterfeit checks into the individuals’ accounts and quickly withdraw funds before the banks could determine the checks were counterfeit.Wright and McShan are scheduled for trial on June 7, 2021, at 9:00 a.m. Sheard’s trial is set for
July 26, 2021, at 9:00 a.m. Both trials will be held at the federal courthouse in East St. Louis before United States District Judge David W. Dugan. If convicted, each count of the indictment carries a maximum sentence of 30 years in prison.An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation was conducted by the United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorney Luke J. Weissler.
Stockton Man Sentenced to over 17 Years in Prison for Conspiracy to Engage in Sex Trafficking of a ChildRead the Press Release
SACRAMENTO, Calif. — Lucious James Roy, 34, of Stockton, was sentenced today by U.S. District Judge Kimberly J. Mueller to 17 years and seven months in prison for conspiracy to engage in sex trafficking of a child, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, between September 2018 and November 2018, Roy recruited a 17‑year-old and a 16-year-old to engage in prostitution. Roy recruited the 17-year-old victim outside of a high school, and he used a social media platform to recruit the 16-year-old victim. Roy then groomed the victims to perform sex acts in exchange for money that he kept. He also used threats of violence to try to control them.
According to court documents, Roy and his co-conspirator, Dawniel Santangelo, 43, of Stockton, created online prostitution advertisements for the victims and drove them to motels across Northern California, including Stockton, Salinas, Oakland, and Ripon, where they had sex with strangers in exchange for money.
On May 10, 2019, Roy and Santangelo were arrested in Jackson County, Oregon, for state prostitution and sex trafficking offenses after police found them in a hotel room with a 15-year-old runaway from Modesto. At that time, the San Joaquin District Attorney’s Office had an open investigation into the defendants for sex trafficking the two other minors. Both the Jackson County District Attorney and the San Joaquin District Attorney dismissed their cases in favor of federal prosecution.
“Today’s sentence is necessary due to the defendant’s long criminal history and to protect the public from future crimes,” Acting U.S. Attorney Talbert said. “He used intimidation and threats to keep his victims compliant and afraid to seek help. His willingness and ability to recruit children and coerce them to engage in prostitution for his financial benefit puts the public in danger.”
“No person, let alone a minor, should be treated as a commodity to be transported and sold again and again,” stated Special Agent in Charge Sean Ragan of the FBI’s Sacramento Field Office. “Every day, the FBI works collaboratively with its law enforcement partners to ensure traffickers face justice and victims can break free from a cycle of abuse and exploitation.”
This case is the product of an investigation by the Federal Bureau of Investigation, Stockton Police Department, San Joaquin District Attorney’s Office, Medford (Oregon) Police Department, and Jackson County District Attorney’s Office. Assistant U.S. Attorneys Cameron L. Desmond and Brian A. Fogerty are prosecuting the case.
Charges are pending against Santangelo. She is scheduled for trial on July 27. If convicted, she faces a mandatory minimum sentence of 10 years in prison and a maximum statutory penalty of life in prison, and a maximum fine of $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Sioux Falls Man Charged with Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Steven Roubideaux, age 51, was indicted on April 6, 2021. He appeared before U.S. Magistrate Judge Veronica L. Duffy on April 8, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that Roubideaux, who had previously been convicted of a sex crime and required to register under the Sex Offender Registration and Notification Act, failed to do so between May 17, 2020, and May 28, 2020.
The charge is merely an accusation and Roubideaux is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Roubideaux was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Sioux Falls Man Charged with Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Billy Frank Burchell, age 50, was indicted on April 6, 2021. He appeared before U.S. Magistrate Judge Veronica L. Duffy on April 8, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on Burchell, who had previously been convicted of a sex crime and required to register under the Sex Offender Registration and Notification Act, failed to do so between November 6, 2019, and November 10, 2020.
The charge is merely an accusation and Burchell is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Burchell was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Sex Offender Makes Appearance in Federal Court for Failing to RegisterRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Sioux Falls, South Dakota, man previously convicted of felony sex crimes, appeared in federal court.
Jeremiah Calvin Rederth, age 38, made his appearance from U.S. Penitentiary – Leavenworth, in Leavenworth, Kansas, before U.S. Magistrate Judge Veronica L. Duffy. Rederth pled guilty to the Indictment returned against him for Failure to Register as a Sex Offender.
According to court documents, Rederth was convicted in 2010 of fourth degree rape, a Class 3 Felony, in the 3rd Judicial Circuit, South Dakota. He was sentenced to 10 years, and 2 years of the sentence were suspended with conditions. As a result of his prior conviction, Rederth is classified as a Tier II sex offender, which requires him to register 2 times per year and update the sex offender registry within 3 days of any change of address, school, or place of employment. Rederth knew of his obligation to register as a sex offender and to update his registration, but failed to do so.
This investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Rederth was remanded to custody to continue serving his sentence for other conduct. A sentencing date has not been set.
Sex Offender Makes Appearance in Federal Court for Failing to RegisterRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Texas man, previously convicted of felony sex crimes, appeared in federal court.
Rene Albarez DeLeon, Jr., age 44 of Texas, made his appearance in federal court in Pierre before U.S. Magistrate Judge William D. Gerdes. DeLeon pled not guilty to the Indictment returned against him for Failure to Register as a Sex Offender.
The maximum penalties for the offense are 10 years of imprisonment, and/or a $250,000 fine, a mandatory minimum term of five years, up to life, of supervised release, and $100 to the Federal Crime Victims Fund.
According to the Indictment, in April 2020, DeLeon, a person required to register under the Sex Offender Registration and Notification Act, knowingly failed to register and update a registration. He is a sex offender by reason of a conviction for sexual assault of a child under the laws of the State of Texas, and he traveled in interstate commerce, and having entered, left, and resided in Indian country, while failing to register or update his registration.
The charge against DeLeon is merely an accusation, and he is presumed innocent until and unless proven guilty.
This investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the cases.
DeLeon was remanded to custody to continue serving his sentence for other conduct. A trial date has not been set.
San Diego Man Sentenced to 188 Months in Fentanyl Overdose DeathRead the Press Release
Assistant U. S. Attorney Larry Casper (619) 546-6734
NEWS RELEASE SUMMARY – April 12, 2021
SAN DIEGO – Jeffrey Alden Blair was sentenced today by U.S. District Judge Anthony J. Battaglia to 188-months in prison for supplying the fentanyl that led to the fatal overdose of 45-year old Derrick Hotchkiss, a long-time rugby player for the San Diego Old Aztecs Rugby Football Club. Through his plea agreement, Blair admitted that the fentanyl he dealt caused Hotchkiss’ death and that he knowingly sold in excess of 400 grams of fentanyl.
Upon arrest, Blair told law enforcement that he understood that fentanyl could cause death and was “no joke.” Blair was arrested in an open storage unit in which agents located more than 500 grams of fentanyl and other drugs and drug-related items.
“Recidivist drug dealers who supply this poison in our community while recognizing the potentially lethal consequences must be held accountable,” said Acting U.S. Attorney Randy S. Grossman. “We will continue to aggressively pursue fentanyl traffickers in overdose cases to ensure justice is fully served.”
“This defendant dealt in more than drugs. He dealt in death,” said Special Agent in Charge of the San Diego DEA John W. Callery. “This sentencing should serve as a warning to other death dealers that we will continue to investigate fentanyl overdose deaths and those dealers who knowingly provide these poisons in San Diego and Imperial County.”
Previously, defendant Christopher Emison was also sentenced in connection with Hotchkiss’ death to 168-months in custody. In a related case, defendant Andrew Gossai will be sentenced on April 26, 2021. According to the Government’s sentencing papers, Gossai sold the fatal dose of fentanyl to Blair who made the purchase for both Emison and himself. In turn, Emison sold the fatal dose to Hotchkiss shortly before his overdose death.
Acting U.S. Attorney Randy Grossman praised prosecutor Larry Casper as well as the agents from Narcotics Task Force Team 10, a multi-agency team housed by DEA that was created in July 2018 to address drug overdose deaths in San Diego, for their efforts on these cases.
For those who suffer from addiction, please know there is help. Call the Crisis line at 888-724-7240; it’s always open.
DEFENDANTS
Case Number 19cr3252-AJB
Jeffrey Alden Blair Age: 34 San Diego, California
Christopher Glenn Emison Age: 33 El Cajon, California
Case Number 19cr3253-AJB
Andrew Samuel Daniel Gossai Age: 33 San Diego, California
SUMMARY OF CHARGES
Andrew Samuel Daniel Gossai and Jeffrey Alden Blair:
Distribution of Fentanyl – Title 21 U.S.C. Section 841(a)(1) and (b)(1)(C)
Maximum Penalties – Mandatory minimum of ten years, and maximum of life in prison and $10 million fine.
Christopher Glenn Emison
Sentenced to 168-months on Distribution of Fentanyl – Title 21 U.S.C. Section 841(a)(1) and (b)(1)(C) with maximum penalties – mandatory minimum of five years and maximum of 40 years in prison and $5 million fine.
INVESTIGATING AGENCIES
Drug Enforcement Administration
Federal Bureau of Investigation
Department of Homeland Security
California Department of Healthcare Services
San Diego Police Department
(The above-listed agencies are represented on DEA NTF Team 10)
Rapid City Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Sonny Ray Escarsega, a/k/a Sonny Ray Ruiz, age 38, was indicted on October 14, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 8, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Escarsega was convicted of Aggravated Sexual Abuse in July 2003. As a result of this conviction, he is required to register as a sex offender. It is alleged that between August 10, 2020, and October 14, 2020, Escarsega, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender and update his registration.
The charge is merely an accusation and Escarsega is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Escarsega was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Portland Woman Sentenced for Selling Pangolin Scales Illegally Imported into the U.S.Read the Press Release
PORTLAND, Ore.—A Portland resident and purveyor of Chinese homeopathic remedies pleaded guilty and was sentenced today for selling pangolin scales illegally imported into the U.S., announced Acting U.S. Attorney Scott Erik Asphaug.
Agnes Yu, 53, was sentenced to three years’ federal probation and a $5,000 fine.
“Illegal trafficking poses a grave and persistent threat to wildlife populations across the globe. The purchase or sale of these animals is a serious crime and priority for federal law enforcement,” said Acting U.S. Attorney Asphaug.
“We commend the Department of Justice and all other agencies that played a role in aiding this investigation and prosecution,” said James Ashburner, a Special Agent in Charge for the U.S. Fish and Wildlife Service Office of Law Enforcement. “Trafficking of pangolins, and other protected species, is a huge part of global illegal wildlife trade. The Service will continue to use every tool at its disposal to fight wildlife trafficking and bring to justice the individuals who are depriving our planet of these magnificent creatures for their own profit.”
According to court documents, Yu and her husband operated Wing Ming Herbs, a store selling Chinese homeopathic remedies and other merchandise in Southeast Portland. On December 7, 2003, U.S. Customs and Border Protection personnel screened Yu and her husband at the U.S.-Canada border. The inspection recovered 10 dried sea snakes and 49 dried big-toothed sea snakes. As a result of this encounter, U.S. Fish and Wildlife Service sent the Yus a letter informing them about federal laws and regulations governing the import and export of wildlife into and out of the U.S, including the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). CITES lists each of the wildlife species whose trafficking it regulates under one of three appendices, with the most endangered and protected listed in Appendix I.
On November 14, 2017, an undercover Postal Inspector with the U.S. Postal Inspection Service went to Wing Ming and spoke with Yu in Chinese. The inspector covertly recorded and videotaped the meeting. In the course of their transaction, Yu sold the inspector thirty grams of pangolin scales for approximately $165. Personnel at the U.S. Fish and Wildlife Service National Fish and Wildlife Forensics Laboratory later confirmed the scales had been taken from a pangolin, a species of scaled anteater-like mammals endemic to Asia and sub-Saharan Africa. All species of pangolins (which form the genus Manis) are listed in CITES Appendix I, meaning that all commercial trafficking in pangolins is prohibited by the Convention.
Yu was aware of U.S. and foreign restrictions on the import, export, and sale of CITES-listed plants and wildlife but did not comply with those restrictions. Yu repeatedly exported American ginseng to customers in China in 2017 and 2018. American ginseng is listed on CITES appendix II, requiring exporters to obtain and ship such ginseng with a valid CITES certificate. Neither Yu nor Wing Ming Herbs procured such certificates.
On July 24, 2018, an undercover agent with the U.S. Fish and Wildlife Service went to Wing Ming Herbs and purchased giant sea horses, which are protected by CITES appendix II and fourteen shark fins, four of which originated from scalloped hammerhead sharks, which are protected by the Endangered Species Act (ESA). On the same date, the U.S. Fish and Wildlife Service conducted a search warrant at Wing Ming Herbs and seized additional pangolin scales, ground Asian elephant ivory which is protected by CITES Appendix I and ESA, eleven penises and fifteen gall bladders of red deer which are protected by ESA, and giant devil ray which is protected by CITES Appendix II. Yu agreed to abandon all the wildlife seized in the search warrant, which included thousands of additional wildlife items.
On March 22, 2021, Yu was charged by criminal information with recklessly selling pangolin illegally imported into the U.S. in violation of CITES.
This case was investigated by the U.S. Fish and Wildlife Service Office of Law Enforcement with assistance from the U.S. Postal Inspection Service, the National Oceanic and Atmospheric Administration, the U.S. Department of Agriculture, Plant Protection Quarantine, and the Oregon State Police. It was prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.
The U.S. Fish and Wildlife Service is responsible for protecting America’s wildlife from poaching, illegal commercialization, and other kinds of wildlife crime. If you have information related to a wildlife crime, please call 1-844-FWS-TIPS (1-844-397-8477) or email [email protected].
Click here for a Simplified Chinese translation of this press release Confiscated dried sea horses Confiscated fried pangolin scales Confiscated Asian elephant ivory powder Confiscated dried shark fins
Pine Ridge Man Receives 35-Year Sentence for Second Degree MurderRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Pine Ridge, South Dakota, man convicted of Second Degree Murder was sentenced by Jeffrey L. Viken, U.S. District Court.
Ricky Bagola, age 34, was sentenced on April 6, 2021, to 35 years in federal prison, followed by 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund for each charge.
Bagola was indicted by a federal grand jury in June 2020. On the morning of January 3, 2020, Bagola and two others went to a residence in Pine Ridge to confront an individual about being shorted methamphetamine. Bagola was denied entry into the home by the occupants. Bagola used his .22 caliber firearm to shoot seven rounds into the home, two of which struck and killed the victim.
This case was investigated by the Oglala Sioux Tribe Department of Public Safety and the Federal Bureau of Investigation. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Bagola was immediately turned over to the custody of the U.S. Marshals Service.
Phony Immigration Attorney Who Filed Hundreds of Fraudulent Asylum Applications Sentenced to More Than 20 Years in Federal PrisonRead the Press Release
Tampa, Florida – Senior U.S. District Judge Virginia M. Hernandez Covington today sentenced Elvis Harold Reyes (56, Brandon, Florida) to 20 years and 9 months in federal prison for mail fraud and aggravated identity theft in connection with a scheme where he posed as an immigration attorney and filed hundreds of fraudulent asylum applications. The Court deferred consideration of victim restitution to a later date.
Reyes had pleaded guilty on December 15, 2020.
According to court documents, Reyes, who owned and operated EHR Ministries Inc., portrayed himself as an immigration attorney. He is not and has never been a licensed attorney. Reyes targeted undocumented immigrants from Spanish-speaking countries who were seeking Florida driver licenses and work authorization. Reyes gave false, inaccurate, and incomplete legal and immigration advice to victims in order to induce them to retain his services and those of EHR Ministries.
Victims retained and paid Reyes to represent them in immigration-related matters before U.S. Citizenship and Immigration Services (USCIS) and other agencies. Reyes filed fraudulent immigration applications in the victims’ names, seeking asylum relief and withholding-of-removal protections provided for under the United Nations Convention Against Torture. In doing so, Reyes falsified answers to questions in the asylum applications—fabricating stories about threats, persecution, and the applicants’ fear of returning to their native countries. Reyes did not inform the victims of the answers that he had provided on their behalf. He also did not inform the victims about the legal, administrative, and other immigration-related consequences that might follow from filing for asylum relief or for Convention Against Torture protection.
Reyes filed more than 225 fraudulent applications, intending to cause victim loss of more than $1 million. His victims’ actual losses exceeded $411,000. Reyes spent the criminal proceeds on, among other things, travel, luxury shopping, spas, jewelry, beautification/anti-aging procedures, and an allowance for his girlfriend.
Reyes threatened aggrieved victims who confronted him by claiming that he could have them deported. And, when investigative reporting revealed Reyes’s scheme, he attempted to obstruct justice by having a friend wipe his computers.
“Posing as an immigration attorney, Reyes targeted hundreds of vulnerable people in the Tampa community with his immigration scam,” said USCIS Tampa District Director Michael Borgen. “USCIS is committed to finding and stopping those who want to cheat the immigration system, and preserving it for those who qualify for immigration benefits.”
“This criminal defrauded hundreds of victims who thought they were starting a path to legal citizenship,” said HSI Tampa Assistant Special in Charge Michael Cochran. “Identity and benefit fraud are crimes that threaten the national security and public safety of the U.S. by creating vulnerabilities to our legal immigration system. Thanks to HSI special agents, and our partners with U.S. Citizenship and Immigration Services and Hillsborough County Sheriff’s Office, he will now be held accountable for his crimes.”
“It is appalling that Elvis Reyes was preying on vulnerable individuals living in fear within our county,” said Hillsborough County Sheriff Chad Chronister. “I am proud of our detectives, who thoroughly investigated claims made by each victim, and our diligent efforts to reach undocumented members of our community through both English and Spanish PSAs, encouraging them to come forward if they were taken advantage of by Mr. Reyes. I am confident that these efforts ultimately helped lead to a conviction.”
This case was investigated by the Department of Homeland Security, Homeland Security Investigations, the United States Citizenship and Immigration Service, and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Frank Murray.
Operation Second Wave Update: Columbus Man Pleads Guilty to Methamphetamine ConspiracyRead the Press Release
CHARLESTON, W.Va. – A Columbus, Ohio man pleaded guilty today to conspiracy to distribute methamphetamine. Rashawn Akmed Miller, 37, was one of 14 defendants charged as a result of a long-term investigation known as “Second Wave,” which dismantled a poly-drug network operating in Kanawha and Fayette counties.
According to the plea agreement and statements made in court, Miller brokered a deal between a Columbus, Ohio supplier and Jason Michael Terrell along with Roger Jarea Drake. Terrell and Drake traveled from Kanawha County to Columbus where Miller introduced them to the supplier who sold them approximately two pounds of methamphetamine. Terrell and Drake returned to West Virginia where they distributed the methamphetamine.
Miller faces between five and forty years in prison when he is sentenced on July 27, 2021.
Other defendants, including Carol Belton, Jimmie Coleman, Sammy Joe Fragale, Sr., Sammy Joe Fragale II, Larry Martin, and Jason Terrell have pled guilty and are awaiting sentencing. Gregory Woods was sentenced to 184 months in federal prison on February 8, 2021. Steven Matthew Bumpus, Roger Jarea Drake, Craig Redman, Tonya Simerly, and Ronald Lee Thomas III are scheduled for trial on June 1, 2021.
The Federal Bureau of Investigation (FBI), the Central West Virginia Drug Task Force (CWVDTF), the Kanawha County Sheriff’s Department, the Charleston Police Department, the United States Postal Inspection Service (USPIS) and the Metropolitan Drug Enforcement Network Team (MDENT) conducted the investigation with assistance from the Drug Enforcement Administration (DEA), who led the investigation of Sammy Joe Fragale, Sr., and Sammy Joe Fragale II, also prosecuted as part of the Second Wave investigation. Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Joshua C. Hanks is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 2:21-cr-00045 (Miller), 2:20-cr-00153 (Woods), and 2:20-cr-00154 (Terrell et al).
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Oklahoma City Man Sentenced to Serve 52 Months in Federal Prison for Bank RobberyRead the Press Release
OKLAHOMA CITY – Today, JOHNELLE FABRE SHELLS, 31, of Oklahoma City, was sentenced to serve 52 months in federal prison for bank robbery, announced Acting U.S. Attorney Robert J. Troester.
On September 17, 2019, a federal grand jury returned a one-count Indictment charging Shells with the robbery of a branch of MidFirst Bank, located at 2225 N. May Avenue, in Oklahoma City.
According to public record and court documents, Shells entered the bank on May 21, 2018. He handed the teller a demand note requesting she give him all the cash in the drawer, and she complied. Later that day, Oklahoma City Police Department arrested Shells in possession of the stolen cash. On October 24, 2019, Shells pleaded guilty to the Indictment.
Today, U.S. District Judge Scott L. Palk sentenced Shells to serve 52 months in federal prison, followed by three years of supervised release. In imposing the sentence, Judge Palk noted the nature and circumstances of the offense and the need for the sentence to reflect the seriousness of the offense.
This case is the result of an investigation by the Federal Bureau of Investigation’s Oklahoma City Field Division and the Oklahoma City Police Department. Former Assistant U.S. Attorney Ed Kumiega and Deputy Criminal Chief Lori Hines prosecuted the case.
Reference is made to court filings for further information.
Newaygo Man Charged with Possession of Destructive DevicesRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced that David Robert-Daniel Saylor, Sr., a resident of Newaygo, Michigan was indicted and charged with multiple federal offenses, including possession of destructive devices and possession of a stolen firearm.
The indictment alleges that on or about March 8, 2021, Saylor possessed in Newaygo County two different improvised explosive devices. One device is described colloquially as a “pipe bomb.” The other is described as “an improvised explosive consisting of a brass fitting wrapped in tape that contained an explosive material.” Neither device was registered to Saylor, as required by federal law. The indictment includes a forfeiture allegation that explains the explosive devices were seized on March 8 and that Saylor must permanently forfeit them to the federal government if he is convicted. Saylor is also charged with possessing on that same date a firearm, specifically a Berretta .22 caliber rifle, knowing that it had been stolen from its lawful owner. Each of the three charges is punishable by up to 10 years’ imprisonment.
The charges in the indictment are merely accusations and are not evidence of guilt. David Saylor Sr. is presumed innocent unless and until proven guilty in a court of law. The government has the burden of proving guilt beyond a reasonable doubt.
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New Castle Woman Indicted on Multiple Drug CountsRead the Press Release
PITTSBURGH - A resident of New Castle, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
The four-count Indictment, returned on April 7 and unsealed today, named Deia Eggleston, age 46, as the sole defendant.
According to the Indictment, from January 2017 through May 2019, Eggleston conspired with individuals known and unknown to possess with the intent to distribute and distribute Schedule I and Schedule II substances, including acetyl fentanyl, fentanyl, crack cocaine, heroin and cocaine. The Indictment further alleges that on May 3, 2019 and May 13, 2019, Eggleston aided and abetted others known and unknown to possess with the intent to distribute the previously named controlled substances. The Indictment further alleges that from January 2017 through May 2019, Eggleston did manage and control a place, that is, her Bleakley Avenue residence, in New Castle, Pennsylvania, as an occupant and did intentionally and knowingly make that residence available for the use and for the purpose of unlawfully manufacturing, storing, and distributing controlled substances.
The law provides for a maximum total sentence of not less than ten years to a maximum of life in prison, a fine of $35,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation leading to the Indictment in this case. The task force is headed by the Drug Enforcement Administration and is comprised of members drawn from the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lawrence County Drug Task Force, Pennsylvania Office of Attorney General, Borough of Baldwin Police Department, McKees Rocks Police Department, Munhall Police Department, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, and the Pennsylvania State Police. The Lawrence County Drug Task Force and the New Castle Police Department also participated in the investigation.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Nebraska Man Sentenced for Sexual Abuse of a MinorRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Gordon, Nebraska, man convicted of Sexual Abuse of a Minor was sentenced by Jeffrey L. Viken, U.S. District Court.
Aaron Wade, age 48, was sentenced on April 6, 2021, to 46 months in federal prison, followed by 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund for each charge.
Wade was indicted by a federal grand jury in January 2019. The charge related to Wade sexually abusing a juvenile female in 2017 at Pine Ridge.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Wade was immediately turned over to the custody of the U.S. Marshals Service.
Mullins Man Sentenced to over Six Years in Federal Prison on Gun ChargeRead the Press Release
Florence, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Robert Anton Warren, 26, of Mullins, was sentenced to over six years in federal prison after pleading guilty to possessing a firearm and ammunition as a felon.
Evidence presented to the court showed that on October 13, 2019, a sergeant with the Mullins Police Department was patrolling the area of Academy Street in Mullins when he saw a car that had no tag lights on the license plate. The sergeant initiated a traffic stop and made contact with the driver, who only had a beginner’s permit and had no licensed driver in the car. The sergeant also noticed that the expiration date on the tag was incorrect and appeared to have been altered. The sergeant issued the driver citations and asked the driver and passenger, Robert Warren, to step out of the car. Because the car was not registered, the sergeant proceeded with having the car towed. During an inventory of the car, the sergeant located an extended magazine with seven rounds of 9mm ammunition under the passenger seat where Warren had been sitting. The sergeant conducted a pat-down of Warren for weapons but did not locate any. Another officer who had arrived on scene to assist attempted to detain Warren, and Warren ran. After Warren ran, officers located a 9mm handgun in the grass in a nearby ditch. The firearm had one round in the chamber. Warren is prohibited from possessing firearms and ammunition based on his prior convictions for strong arm robbery and possession of a stolen pistol.
Chief United States District Judge R. Bryan Harwell sentenced Warren to 78 months in federal prison, to be followed by 36 months of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Mullins Police Department, and the Marion County Combined Drug Unit. Assistant United States Attorney Lauren Hummel prosecuted the case.
The case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Meth and Cocaine Distribution Leader known as “Picasso” SentencedRead the Press Release
Indianapolis – Acting U.S. Attorney John E. Childress announced today that Kenyatta Ray, 43, Indianapolis, was sentenced to 278 months in federal prison by U.S. District Judge James R. Sweeney for conspiracy to distribute methamphetamine and conspiracy to launder monetary instruments.
“The violence and social devastation that methamphetamine brings to our communities is a problem that law enforcement must address.” said Childress. “In addition to illegal drugs, our communities have suffered too much violence at the hands of felons in possession of firearms. Preventing violent crime through dismantling drug trafficking organizations and taking guns out of the hands of those unable to possess a firearm, remains a top priority of my office and I will use every available federal resource to help keep our communities safe.”
Starting in February 2019, federal agents began investigating an Indianapolis based methamphetamine and cocaine distribution organization. Throughout the investigation it was determined that a part time tattoo artist named Kenyatta Ray a.k.a. Picasso was the leader, John Michael Griffin and others transported the methamphetamine and other illegal drugs to Indianapolis to be distributed, and Amanda Rodriguez, as well as Ray were the ones who delivered the illegal drugs to the customers.
Ray would be contacted, usually by phone, and a certain amount of methamphetamine and or other illegal drugs were requested. Then Ray and or Rodriguez would meet the buyer at a predetermined location and deliver the illegal drugs to the buyer. On several occasions the buyer would be an undercover federal agent.
In July 2019, agents conducted search warrants at the residence where Ray was staying, the tattoo shop where Ray worked part time, and at Rodriguez’s residence in Indianapolis. During those searches, multiple firearms belonging to Ray were discovered as well as illegal drugs and other items associated with drug trafficking. The investigation also confirmed that Ray was laundering illegal drug proceeds by having them wired to his California based source of drug supply.
Ray has a lengthy criminal history which includes eight felony drug convictions in both Indianapolis and Los Angeles, California, as well as felony firearms convictions in both cities (to include Assault with a Firearm in Los Angeles).
Ray’s accomplices, Amanda Rodriguez and John Michael Griffin have already been sentenced.
- Rodriguez sentenced to 64 months in federal prison, followed by two years’ supervised release.
- Griffin sentenced to 168 months in federal prison, followed by five years’ supervised release.
This case was investigated by the DEA, IRS-Criminal Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Indianapolis Metropolitan Police Department.
DEA Assistant Special Agent in Charge, Michael Gannon said, “Operation Picasso was a perfect example of how local, federal and state law enforcement partners collaborated at the highest possible levels and crushed a violent drug trafficking organization operating out of central Indiana. DEA and our partners remain committed to keeping our communities safe and holding drug traffickers like Mr. Ray accountable for trying to destroy our communities with debilitating drugs like methamphetamine.”
“The sentencing of Kenyatta Ray is a decisive blow against the spread of methamphetamine in the community,” said Tamera Cantu, Acting Special Agent in Charge, IRS Criminal Investigation Chicago Field Office. “All financial transactions leave a trail and our special agents have the unique expertise to follow those leads. IRS Criminal Investigation was proud to provide this financial expertise as we worked alongside our law enforcement partners and bring these brutal criminals to justice."
“Ray and his associates have a demonstrated history of poisoning our communities with drugs and violence,” stated Roland H. Herndon, Jr., Special Agent in Charge for ATF’s Columbus Field Division. “ATF and our partners will continue to target the sources of criminal activity for investigation and prosecution. We will not give up and we will continue to work to ensure that anyone who is using a firearm to further their criminal enterprise, especially those who are prohibited from possessing a gun, are brought to justice.”
According to Assistant U.S. Attorneys Michelle Brady, who prosecuted this case for the government, Ray must pay a $2500 fine and will serve 10 years supervised released after his imprisonment.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
In November of 2020, Acting United States Attorney John E. Childress renewed a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s enduring commitment to investigate and prosecute more organizations that supply and distribute methamphetamine and/or heroin in the district See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 3.1.
Manufacturer Sentenced for Conspiring to Manufacture and Sell Counterfeit GoodsRead the Press Release
PROVIDENCE – A Brooklyn, NY, businessman who admitted to arranging the manufacture of counterfeit clothing, apparel, and gear, in China and Pakistan, that was shipped to wholesalers for distribution in the United States, including to the United States military, has been sentenced to 18 months in federal prison and ordered to pay a $15,000 fine.
Bernard Klein, 40, conspired with New York wholesaler Ramin Kohanbash, 51, to arrange the mass production of goods in China and Pakistan that carried counterfeit markings and labels identical to genuine trademarks registered with the U.S. Patent and Trademark Office.
According to court documents, Klein was provided samples of genuine clothing, apparel, and gear by Kohanbash, for reverse engineering in China. Prior to the approval of mass production of the counterfeit goods, Klein provided a preproduction sample of the counterfeit and falsely labeled goods to Kohanbash, and Klein emailed photographs of the counterfeit goods, as well as false hangtags and labels, to Kohanbash for approval. After making changes ordered by Kohanbash, Klein facilitated the manufacturing of goods that contained counterfeit markings identical to genuine marks registered with the U.S. Patent and Trademark Office. During the course of the conspiracy, Kohanbash paid Klein $10.9 million dollars for the counterfeit and falsely labeled goods.
Among the counterfeit items produced in China and Pakistan, and shipped to Kohanbash in the United States for distribution, were counterfeit FREE® hoods, counterfeit Polartec® fleece shirts, counterfeit United Joint Forces® Multicam® APEC parkas, and Gen III Level 7 parkas bearing counterfeit Primaloft® and ADS® hangtags. The FREE® hoods were falsely labeled as meeting flame resistance standards, when in fact they lacked such safety features. Likewise, the Multicam® APEC parkas lacked the important near-infrared signature management technology designed to make the wearer more difficult to detect with equipment such as night-vision goggles. Klein and Kohanbash instructed the Chinese factories on how to package the counterfeit goods and to affix removable “Made in China” stickers to avoid detection by U.S. Customs.
Klein pleaded guilty on August 26, 2020, to conspiracy to commit mail fraud. He was sentenced on April 9, 2021, by U.S. District Court Judge William E. Smith to 18 months in federal prison to be followed by three years of federal supervised release, and ordered to pay a fine of $15,000, together with restitution to be determined at a later date.
In tandem with the criminal case, Klein also entered into a civil settlement agreement under which he has paid $348,000 to resolve liability to the United States under the federal False Claims Act for goods sold to certain government purchasers.
Klein’s sentence is announced by Acting United States Attorney Richard B. Myrus; Patrick Hegarty, Special Agent-in-Charge of Defense Criminal Investigative Service, Northeast Field Office; Special Agent in Charge Joseph P. Dattoria, General Services Administration Office of Inspector General, New England Regional Investigations Office; Resident Agent in Charge Michael D. Conner, Major Fraud Unit, US Army Criminal Investigation Command; William W. Richards, Special Agent in Charge, Office of Special Investigations, Office of Procurement Fraud Detachment 6, Joint Base Andrews, MD; Homeland Security Investigations Newark, NJ, Special Agent in Charge Jason J. Molina; and Marty C. Raybon, Acting Director of Field Operations, Customs and Border Protection, New York Field Office.
On June 13, 2019, Ramin Kohanbash pleaded guilty to conspiracy to commit wire fraud and trafficking in counterfeit goods. At the time of his guilty plea, Kohanbash admitted that among the items he and others arranged to counterfeit were 200 military parkas of a type used by U.S. Air Force personnel stationed in Afghanistan. These parkas were falsely represented to be genuine Multicam. He is scheduled to be sentenced on May 7, 2021. Kohanbash has separately paid a $694,398 civil False Claims Act settlement arising out of his admitted role in ordering, producing, procuring and selling foreign made products that were intended for sale to government purchasers.
Terry Roe, 48, of Burlington, ND, a manager of a Minot, ND, company that sold uniform items and gear to the United States military and its Base Supply centers, the National Guard, police, and other government agencies, was indicted on September 30, 2020, for his alleged role in the conspiracy. Roe is awaiting trial on charges of conspiracy to commit wire fraud and trafficking in counterfeit goods; mail fraud and aiding and abetting; and trafficking in counterfeit goods and aiding and abetting.
The cases are being prosecuted by Assistant U.S. Attorneys Sandra R. Hebert, Zachary A. Cunha, and Lee H. Vilker.
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Man from Ranchos de Taos sentenced to 12 years in federal prison for carjackingRead the Press Release
ALBUQUERQUE, N.M. – Tranquilino Valencia, 37, of Ranchos de Taos, New Mexico, was sentenced in federal court on April 7 to 12 years in prison for carjacking.
Valencia pleaded guilty on May 28, 2020. According to the plea agreement, on Oct. 13, 2017, Valencia approached a group of campers at the Dalton Canyon Campground in San Miguel County, New Mexico, and carjacked one of the members at gunpoint. Valencia pointed his firearm at the victim and demanded his car keys, wallet and cellphone. Before driving off, Valencia fired a shot over the victim’s head and stole $50 before throwing the wallet out of the car window.
The Albuquerque Field Office of the FBI and the New Mexico State Police investigated this case. Assistant U.S. Attorney Samuel A. Hurtado prosecuted the case.
Man Pleads Guilty to Federal Drug ChargeRead the Press Release
HUNTINGTON, W.Va. – Rafael Starks, 36, of Detroit, Michigan pleaded guilty today to an indictment charging him with aiding and abetting the distribution of heroin. Starks was indicted by a federal grand jury in October 2018.
Starks admitted that on August 1, 2018, he and another individual sold heroin to a confidential informant in the 1100 block of 9th Avenue in Huntington.
Starks faces up to 20 years in federal prison when he is sentenced on July 12, 2021.
The Cabell County Sheriff’s Department conducted the investigation. The plea hearing was held before United States District Judge Robert C. Chambers. Assistant United States Attorney Stephanie S. Taylor is handling the prosecution.
The case was prosecuted as part of Operation Synthetic Opioid Surge (S.O.S.), an enforcement surge that seeks to reduce the supply of deadly synthetic opioids in high impact areas.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:18-cr-00249.
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Man Pleads Guilty to Distributing Fentanyl While Released on Bond in Federal Gun CaseRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that BRIAN VELEZ, also known as “Whites,” 32, formerly of Hartford and West Hartford, pleaded guilty today to distributing fentanyl while released on bond in a federal gun case.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding before U.S. Magistrate Judge Donna F. Martinez occurred via videoconference.
According to court documents and statements made in court, at approximately 10:20 a.m. on November 27, 2018, a car Velez was operating sped away from Hartford Police officers who were attempting to stop the vehicle in Hartford’s South End. Velez parked in a driveway of a residence on Newbury Street and then ran from the car while carrying a duffel bag. After Velez was apprehended, a detective located the duffel bag in Velez’s path of travel. The bag contained a disassembled Ruger AR 556 semi-automatic rifle.
Velez was detained from the date of his arrest until April 2, 2019, when he was released on a $100,000 bond.
In January 2020, law enforcement received information that Velez was involved in ongoing criminal activity, including the distribution of narcotics. On January 28, 2020, investigators conducted a controlled purchase of 20 bags of fentanyl from Velez in Hartford.
On January 29, 2020, Velez pleaded guilty to possession of a firearm by a felon, stemming from his arrest in November 2018.
Velez has been detained since March 12, 2020, after he was arrested on a criminal complaint charging him with distributing fentanyl.
Velez is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on July 7, 2021, at which time he faces a maximum term of imprisonment of 10 years for unlawfully possessing a firearm, and a maximum term of imprisonment of 30 years for distributing fentanyl while on release in a pending federal case.
This investigation has been conducted by the FBI’s Northern Connecticut Violent Crimes Gang Task Force, the FBI’s Connecticut Violent Crime Task Force, and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Luling Man Charged with Possession of Files Depicting the Sexual Victimization of ChildrenRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that DOMINIC ROMANO, age 20, a resident of Luling, Louisiana, was charged on Friday, April 9, 2021, by a federal grand jury sitting in the Eastern District of Louisiana in a one-count Indictment with possession of images and videos depicting the sexual exploitation of children under the age of twelve years old, in violation of 18 U.S.C. ' 2252(a)(4)(B).
ROMANO faces a maximum term of imprisonment of twenty (20) years. ROMANO also faces a lifetime of supervised release, a $250,000 fine, and he can be required to register as a sex offender.
U. S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
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Kyle Man Sentenced to 45 Years in Federal Prison for Sexual AssaultRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Kyle, South Dakota, man convicted of two counts of Abusive Sexual Contact was sentenced by Jeffrey L. Viken, U.S. District Court.
Antonio Frazier, age 35, was sentenced on April 5, 2021, to 45 years in federal prison, followed by a lifetime of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund for each charge. The time in federal prison is to be served concurrently.
Frazier was indicted by a federal grand jury in February 2020. The charges related to Frazier, between 2005 and 2011, having sexual contact with a minor female child at a housing development near Kyle. Between 2003 and 2004, Frazier also had sexual contact with another juvenile female near Kyle.
This case was investigated by the Oglala Sioux Tribe Department of Public Safety and the Federal Bureau of Investigation. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Frazier was immediately turned over to the custody of the U.S. Marshals Service.
Kingwood Man Indicted for Fraudulent Online Sales of Purported Native American-Made GoodsRead the Press Release
In San Antonio, a federal grand jury indicted a Kingwood man for selling allegedly fraudulent Native American-made goods on the internet, announced U.S. Attorney Ashley C. Hoff; Edward Grace, Assistant Director, U.S. Fish and Wildlife Service (USFWS) Office of Law Enforcement; and Meridith Stanton, Director of the Indian Arts and Crafts Board, U.S. Department of the Interior.
A federal grand jury indictment unsealed today charges 58-year-old Kevin Charles Kowalis with four counts of mail fraud and four counts of misrepresentation of Indian goods under the Indian Arts and Crafts Act. The indictment alleges that from January 23, 2020 to July 15, 2020, Kowalis fraudulently marketed and sold on eBay.com pieces of jewelry he received from a manufacturer in the Philippines unaffiliated with any federally recognized Native American tribe. The indictment alleges that Kowalis described the items for sale on eBay as “Native American Indian Handmade,” “Zuni,” “Navajo,” and “genuine Indian handcrafted” and received payment for the jewelry using the online payment platform, PayPal.com. As further alleged in the indictment, once he received payment Kowalis shipped the jewelry to the customer using the U.S. Postal Service including several packages containing counterfeit Native American-style jewelry to a purchaser in San Antonio.
“Native American art fraud is a serious crime that hurts consumers and severely impacts the economic and cultural livelihood of Native American artists, craftspeople and Tribes,” said Edward Grace, Assistant Director of the U.S. Fish and Wildlife Service Office of Law Enforcement. “Our special agents investigate crimes in violation of the Indian Arts and Crafts Act on behalf of the U.S. Department of the Interior and the Indian Arts and Crafts Board. By working together, we can help protect and preserve Native American art and craftwork for future generations.”
“The Indian Arts and Crafts Board is responsible for the Indian Arts and Crafts Act, which makes it a crime to sell counterfeit Indian art and craftwork. The Board is committed to protecting the integrity of Indian art. Texas has a vibrant Indian art market and we want consumers to have confidence that they are purchasing authentic work,” said Director Stanton. “We strongly commend our colleagues in the U.S. Attorney’s Office for the Western District of Texas. As a result of their expertise, hard work, and dedication, in concert with the U.S. Fish and Wildlife Service’s Indian Arts and Crafts Act Investigative Unit, this alleged counterfeiter has now been stopped by this key indictment and arrest. This is a vital step in protecting Indian artists, economies, and culture.”
Upon conviction, Kowalis faces up to 20 years in federal prison for mail fraud and up to five years in federal prison for misrepresentation of Indian goods.
The USFWS Office of Law Enforcement with assistance from the Indian Arts and Crafts Board, conducted this investigation. Assistant U.S. Attorney William F. Calve is prosecuting this case.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
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Justice Department Files Sexual Harassment Lawsuit Against Owners and Managers of Rental Properties in PennsylvaniaRead the Press Release
The Justice Department announced today that it has filed a lawsuit against Allen and Heidi Woodcock, owners and managers of rental properties in Oil City, alleging sexual harassment and retaliation in violation of the Fair Housing Act.
The lawsuit, filed in the U.S. District Court for the Western District of Pennsylvania, alleges that Allen Woodcock sexually harassed a female tenant in April 2019 after he entered her home to perform maintenance. According to the complaint, Allen Woodcock touched the tenant’s body without her consent and forcibly tried to kiss her, and the Woodcocks evicted the tenant after she reported the harassment to Heidi Woodcock.
“People should never have to endure sexual harassment in their home, where they should feel safe and secure,” said Principal Deputy Assistant Attorney General Pamela S. Karlan of the Justice Department’s Civil Rights Division. “The Justice Department will vigorously enforce the Fair Housing Act against landlords who engage in this kind of abusive and illegal behavior.”
“Combatting sexual harassment in housing is a high priority at the Department of Housing and Urban Development (HUD),” said Acting Assistant Secretary for Fair Housing Jeanine Worden. “This is an example of how HUD and the Justice Department work together to enforce the Fair Housing Act.”
“Sexual harassment in housing is illegal,” said Acting U.S. Attorney Stephen R. Kaufman for the Western District of Pennsylvania. “Landlords, property managers or anyone else with control over housing should recognize by the filing of this lawsuit that we take action to combat such despicable conduct.”
The lawsuit arose from a complaint that the former tenant filed with the Department of Housing and Urban Development (HUD). After HUD investigated the complaint, it issued a charge of discrimination and the matter was referred to the Justice Department.
Today’s lawsuit seeks monetary damages to compensate the victim and a court order barring future discrimination. The complaint contains allegations of unlawful conduct; the allegations must be proven in court.
The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing. Since launching the Initiative in October 2017, the Justice Department has filed 21 lawsuits alleging sexual harassment in housing.
The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental dwellings owned or managed by Allen and Heidi Woodcock, or who have other information that may be relevant to this case, should call the Justice Department’s Housing Discrimination Tip Line at 1-800-896-7743, email the Justice Department at [email protected], or submit a report online.
Individuals can also report sexual harassment and other forms of housing discrimination by contacting HUD at 1-800-669-9777 or by filing a HUD complaint online.
Jamaican national arrested in Canada border crossing near Eureka admits immigration crimeRead the Press Release
MISSOULA — A Jamaican national who crossed into Montana from Canada and was arrested with others near Whitefish after a 75-mile car case admitted to an immigration charge today, Acting U.S. Attorney Leif Johnson said.
Christopher White, 41, also known as Gregory White, Jahnyi Foster and Raymond White, pleaded guilty to illegal reentry of a deported or removed alien. White faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge Kathleen L. DeSoto presided. White was detained pending further proceedings. Sentencing was set for Aug. 12 before U.S. District Judge Dana L. Christensen.
In court documents filed in the case, the government alleged that White, a Jamaican national, was removed from the United States in March 2020 through New York to Canada. White did not have permission from the Department of Homeland Security to reenter the United States. On Jan. 23, White returned to the United States near West Kootenai, near Eureka, and not a port of entry. White, who was a passenger in a vehicle, was arrested after a 75-mile car chase in which a defendant, Rastesfaye Neil, was the driver. Neil has pleaded not guilty to charges.
The government further alleged that on Jan. 23, at about 8:55 a.m., the Spokane Sector Border Patrol Dispatch received information that three subjects dressed in camouflage and dark clothing and carrying black backpacks were crossing the border from Canada into the United States near the area of West Kootenai.
Border Patrol agents located a Nissan Sentra on West Kootenai road leaving the area where the three subjects had crossed over the international boundary. The agents attempted to stop the vehicle, and the Nissan eventually pulled to the side of the road. As agents approached the vehicle on foot, the Nissan sped away and headed southeast on Highway 93. Law enforcement ultimately deployed a vehicle immobilization device on the Nissan, and it came to a stop down a small embankment off the highway north of Whitefish. Law enforcement arrested the four occupants.
The Border Patrol, Flathead County Sheriff’s Office, Lincoln County Sheriff’s Office, Eureka Police Department, Whitefish Police Department and Montana Highway Patrol.
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Home Health Company Pays $28K for Employing "Excluded" IndividualRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that CARECO MEDICAL, INC. and its owner and CEO, HELGA PFANNER, have entered into a civil settlement agreement with the federal government in which they will pay $28,246 to resolve allegations that they improperly employed an individual who was excluded from all federal healthcare programs. CareCo Medical (“CareCo”) is a Waterford-based home healthcare organization that provides skilled nursing services, medical social worker services, and rehabilitative therapies.
Acting U.S. Attorney Boyle explained that when the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG) excludes an individual or entity from federal health care programs, no program payments may be made for items or services furnished by that excluded individual or entity. In September 1999, HHS-OIG issued a Special Advisory Bulletin to provide guidance to health care providers who might employ or contract with an excluded individual or entity. In May 2013, HHS-OIG issued an Updated Special Advisory Bulletin containing additional guidance. Both the original and updated Special Advisory Bulletins advised that, in order to avoid potential liability, health care providers should check the List of Excluded Individuals/Entities on the HHS-OIG web site (http://oig.hhs.gov/exclusions).
In 2012, Todd Roberts, a physical therapist, pleaded guilty to one count of obstructing a federal audit and, pursuant to a related civil settlement agreement, agreed to pay $328,828. In addition, Roberts entered into a six-year Integrity Agreement with the U.S. Department of Health and Human Services designed to ensure future compliance with the requirements of the Medicare program. Roberts later defaulted on his obligations under the Integrity Agreement and was excluded from all federal health care programs in 2015.
In November 2018, CareCo and Pfanner hired Roberts for a management position at CareCo. Roberts served in that position until March 2019.
To resolve their liability for hiring and employing Roberts while he was excluded from all federal healthcare programs, CareCo and Pfanner will pay $28,246.
This matter was investigated by HHS-OIG and is being prosecuted by Assistant U.S. Attorney Richard M. Molot.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.
Harrison County man sentenced for firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Mark Allen Riffle, of Clarksburg, West Virginia, was sentenced today to 48 months of incarceration for a firearms charge, Acting United States Attorney Randolph J. Bernard announced.
Riffle, 32, pled guilty in November 2020 to one count of “Unlawful Possession of a Firearm.” Riffle, a person prohibited from having a firearm because of a prior conviction, had a .380 caliber pistol, a .40 caliber pistol, a .22 caliber rifle, a .410-gauge shotgun, a .22 caliber rifle, and a 12-gauge shotgun in May 2019 in Harrison County.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the cases on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative investigated.
U.S. District Judge Thomas S. Kleeh presided.
Hampton Roads Tax Preparer Sentenced for FraudRead the Press Release
NORFOLK, Va. – A Norfolk woman was sentenced today to 33 months in prison for wire fraud and participating in the preparation of over 30 fraudulent income tax returns while she served as the co-owner of a tax preparation service with multiple offices in the Hampton Roads area.
“As the evidence demonstrated at trial, the defendant repeatedly violated her trusted position as a tax preparer and ran a business based on deceptive and duplicitous practices in order to enrich herself,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Tax fraud schemes are serious offenses that deprive our communities of necessary resources, and those who engage in this conduct will be held accountable in EDVA.”
According to court documents and the evidence presented at trial, Nikia Tull, 44, was the co-owner, operator, and manager of YT Phoenix Enterprises, Inc., aka Phoenix Financial Tax Service, a tax preparation service based in Virginia Beach, Chesapeake, and Suffolk. Between 2014 and 2018, Tull willfully participated in preparing and submitting 33 federal income tax returns to the IRS containing numerous false and fraudulent items. In 2019, Tull continued her fraud by submitting forged and fraudulently altered bank statements to a private lending company in support of loan applications for $70,000.
According to court documents, Tull included a variety of false and fraudulent items on the income tax returns of her clients without their knowledge or consent. Some of the fraudulent items Tull included were residential energy credits, unreimbursed employee expenses, charitable contributions, and business losses. Tull charged her clients based on the number of separate forms filed with each return, so she was able to collect more fees for herself by including the false items and amounts. As a result of Tull’s fraudulent conduct, the IRS suffered a total loss of approximately $230,000.
In addition to defrauding the IRS, Tull also devised a wire fraud scheme aimed at a small business lender in which she submitted materially false and fraudulently altered bank statements in support of online applications for loans of $20,000 and $50,000 for her business.
After a seven-day trial, a federal jury convicted Tull on November 12, 2020 on five counts of wire fraud and 33 counts of aiding and assisting in the preparation of false and fraudulent income tax returns. As part of her sentencing today, Tull was ordered to pay restitution in the amount of $162,460.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Darrell J. Waldon, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar.
Assistant U.S. Attorneys Daniel P. Shean and Joseph L. Kosky prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-9.
Georgia Man Pleads Guilty to Stealing Millions from the San Felipe Del Rio Consolidated Independent School DistrictRead the Press Release
In Del Rio this afternoon, Donald Ray Lockard admitted to stealing over $2 million from the San Felipe Del Rio Consolidated Independent School District, announced U.S. Attorney Ashley C. Hoff and FBI Special Agent in Charge Christopher Combs, San Antonio Field Office.
Appearing before U.S. District Judge Alia Moses, the 66-year-old Douglasville, Georgia resident pleaded guilty to one count of conspiracy to commit wire fraud. By pleading guilty, Lockard admitted that while doing business as DL Investments from August 2019 to February 2020, he stole school district funds and used them for his own personal benefit. According to court records, unknown co-conspirators sent fraudulent emails to the school district’s comptroller claiming to be representatives of the financial institution to which the school district made bi-annual bond payments. Those fraudulent emails resulted in the diversion of the school district’s bond payments to a different financial account established and controlled by Lockard. Three separate fraudulent wire transfers to Lockard’s account on February 12, 2020, totaled $2,013,762.50.
During this investigation, federal authorities seized over $1.8 million from the defendant’s bank accounts. Lockard has agreed to forfeit those funds and pay a monetary judgment for the remaining amount derived from his scheme that was not recovered by the government.
Lockard, who remains on bond, faces up to 20 years in federal prison. Sentencing has yet to be scheduled.
The FBI is conducting this ongoing investigation. Assistant U.S. Attorney Joshua Banister is prosecuting this case.
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Georgia Inmate Sentenced to 15 Years on Federal Methamphetamine ChargeRead the Press Release
HARRISONBURG, Va. – Abel Gallegos Hernandez, an inmate serving prison time in Georgia, who coordinated the distribution of more than 500 grams of methamphetamine using drug packages hidden in tires of vehicles being shipped from New Mexico to Virginia, was sentenced last week in U.S. District Court to 180 months in federal prison. Acting United States Attorney Daniel P. Bubar and Special Agent in Charge Raymond Villanueva for HSI’s Washington, D.C. field office announced the sentence today.
Hernandez, 30, pleaded guilty in June 2020 to one count of conspiring to distribute 500 grams or more of methamphetamine and one count of aiding and abetting another’s attempt to knowingly and intentionally possess with the intent to distribute 500 grams or more of methamphetamine.
According to court documents, in June 2018, while incarcerated in the Bureau of Prisons in Georgia, Hernandez was actively involved in the trafficking of virtually pure methamphetamine into the Western District of Virginia.
Using Facebook and a contraband cellphone from inside McRae Correctional Facility in Georgia, Hernandez arranged for the delivery of four separate shipments of methamphetamine from New Mexico to the Waynesboro area. The shipments, occurring between January and June of 2018, totaled nearly 30 kilograms of pure methamphetamine. Hernandez arranged for the drugs to be hidden inside the tires of vehicles being hauled on tractor-trailer car-haulers.
The investigation of the case was conducted by Homeland Security Investigations, Waynesboro Police Department, the Drug Enforcement Administration and the New Mexico State Police. Assistant United States Attorney Ronald M. Huber prosecuted the case for the United States.
Gallup man charged with possession and distribution of child pornographyRead the Press Release
ALBUQUERQUE, N.M. – Ervinson Yazzie, 30, of Gallup, New Mexico, was charged in federal court on April 7 with receipt, possession and distribution of child pornography. Yazzie was ordered to remain in custody pending release to a halfway house.
According to a criminal complaint, on Oct. 10, 2018, the New Mexico Attorney General’s Office received a CyberTipline report from the National Center for Missing and Exploited Children, which alleged that Yazzie had used Facebook to send child pornography to another Facebook user. The investigation that followed revealed that Yazzie allegedly had sent additional child pornography files through Facebook and possessed more child pornography on a computer hard drive.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Yazzie faces a minimum of five years and up to 20 years in prison.
The Gallup Resident Agency of the FBI’s Albuquerque Field Office investigated this case with assistance from the New Mexico Attorney General’s Office and the New Mexico Regional Computer Forensics Lab. Assistant U.S. Attorney Sarah J. Mease is prosecuting the case.
Fort Bend County home health owner charged with copying and pasting doctor signaturesRead the Press Release
HOUSTON ‐ A 60-year-old Richmond man is now in custody on charges of making false statements in his scheme to defraud Medicare, announced Acting U.S. Attorney Jennifer B. Lowery.
Paul Njoku is expected to make his initial appearance before U.S. Magistrate Judge Peter Bray at 2 p.m.
The five-count indictment, returned Feb. 3, alleges Njoku made false statements relating to health care matters by copying and pasting doctor and nurse signatures onto patient paperwork.
According to the charges, Njoku owned and operated Opnet Healthcare Services Inc. doing business as P&P Healthcare Services. Medicare had made several requests to them seeking supporting documentation for billed claims. In response, Njoku allegedly falsified patient treatment notes and home health certification paperwork by copying and pasting the signatures of a doctor and a nurse.
Each conviction of making false statements relating to health care matters carries a possible five-year term of imprisonment and a maximum $250,000 fine.
The Department of Health and Human Services ‐ Office of Inspector General, FBI and Texas Attorney General’s Medicaid Fraud Control Unit conducted the investigation. Special Assistant U.S. Attorney Abdul Farukhi is prosecuting the case.
An indictment is an accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Former Santa Maria Resident Sentenced to Three Months in Federal Prison for Shooting Elephant Seal to DeathRead the Press Release
LOS ANGELES – A former resident of Santa Barbara County was sentenced today to three months in federal prison for fatally shooting a northern elephant seal on a beach near San Simeon.
Jordan Gerbich, 30, who at the time of the offense resided in Santa Maria and who now lives in Coalville, Utah, was sentenced by United States District Judge Dale S. Fischer. Judge Fischer also ordered Gerbich to be placed on one year of supervised release following his release from prison, serve a three-month term of home detention, perform 120 hours of community service, and pay a $1,000 fine.
Gerbich pleaded guilty in December 2020 to one misdemeanor count of illegally taking a marine mammal.
On September 28, 2019, Gerbich drove to an elephant seal viewing area adjacent to the Piedras Blancas Marine Reserve and Monterey Bay National Marine Sanctuary. Gerbich brought a .45-caliber pistol and, aided with a flashlight, used the firearm to shoot and kill a northern elephant seal as the animal was resting on the beach in the Piedras Blancas rookery. The next day, the elephant seal was discovered on the beach with a bullet hole in its head.
“It remains unclear what motivated [Gerbich] to commit such an act; nevertheless, [Gerbich] knew it was wrong,” prosecutors wrote in their sentencing memorandum.
Northern elephant seals are a protected species under the Marine Mammal Protection Act. They live up and down North America’s Pacific coast and haul out on land in areas called rookeries. These rookeries are typically populated with elephant seals year-round, but populations vary throughout the year based on breeding and molting cycles.
The National Oceanic and Atmospheric Administration’s Office of Law Enforcement investigated this matter. The California Department of Fish and Wildlife provided substantial assistance.
Assistant United States Attorney Heather C. Gorman of the Environmental and Community Safety Crimes Section prosecuted this case.
Former Police Officer Admits Unlawfully Possessing and Transferring FirearmsRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that JOSEPH RYAN, 57, of Trumbull, waived his right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to a federal firearm charge related to his unlawful possession and transfer of five firearms on behalf of his drug dealer.
According to court documents and statements made in court, on April 27, 2018, Ansonia Police executed a state search warrant at an address in Ansonia in order to locate and seize 12 firearms that were registered to a pistol permit holder at the residence. Investigators could only locate five firearms during the search. The five firearms were then transported to the Ansonia Police Department for safekeeping. On April 3, 2019, Ryan, who at the time was a police officer with the Greenwich Police Department, went to the Ansonia Police Department and took custody of the five firearms that had been seized.
In August and September 2019, members of ATF and the New Haven Police Department made controlled purchases of four firearms from Malique Martin. Three of the four firearms purchased were among the firearms that Ryan took into his custody from the Ansonia Police Department on April 3, 2019. The investigation revealed that Ryan, who was addicted to heroin transferred firearms to an individual who was a convicted felon, and who helped facilitate heroin transactions between Ryan and a heroin supplier. Some of the firearms were then transferred to Martin.
Ryan was arrested on a federal criminal complaint on February 21, 2020.
Ryan pleaded guilty to one count of possession of firearms by an unlawful user of a controlled substance, an offense that carries a maximum term of imprisonment of 10 years. Judge Meyer scheduled sentencing for July 6, 2021.
Ryan is released on a $100,000 bond pending sentencing.
Martin, of Ansonia, previously pleaded guilty to one count of dealing firearms without a license and one count of possession of a firearm with an obliterated serial number. On June 16, 2020, he was sentenced to 12 months and one day of imprisonment.
This investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), New Haven Police Department, Ansonia Police Department and Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Maria del Pilar Gonzalez.
This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Former Nike Marketing Manager Pleads Guilty to Wire Fraud, Money Laundering, and Making False StatementsRead the Press Release
PORTLAND, Ore.—Errol Andam, 49, of Beaverton, Oregon, a former marketing manager at Nike, Inc., pleaded guilty today to wire fraud, money laundering, and making false statements on a loan application as part of a scheme to defraud his former employer, announced Acting U.S. Attorney Scott Erik Asphaug.
According to court documents, from 2001 until his termination in 2018, Andam was employed by Nike at its headquarters in Beaverton. Most recently, Andam worked as a manager in the company’s North American Retail Brand Marketing division wherein he managed the design, build-out, and operation of “pop-up” retail venues, temporary Nike shops situated near and tailored to sports competitions and other special events around the U.S.
In the summer of 2016, Andam recruited a childhood friend to establish a company to design and build the pop-up venues as an independent contractor for Nike. Andam used his authority as a manager at Nike to ensure that his friend’s company was consistently awarded the contracts for these jobs. Though he had no formal role in his friend’s company, Andam assumed control of much of the company’s financial operations, managing financial accounts and issuing invoices to Nike.
To conceal his role in the scheme, Andam used an alter ego, “Frank Little,” to invoice Nike and manage the contract company’s account with Square, Inc., a California-based provider of mobile credit-card-processing services. In 2016, Andam also renewed the lapsed registration of an Oregon-based limited liability corporation (LLC) he owned so that he could use the defunct entity as a shell company to funnel the proceeds diverted from Nike and his friend’s company to accounts under his personal control.
Beginning in September 2016, Andam caused credit-card sales at various pop-up venues around the U.S. to be run through card readers associated with a Square account owned by his friend’s company. These proceeds were transferred to Square in California and then to Andam’s LLC bank account in Oregon. Andam represented to both Nike and his friend that the proceeds of these sales were credited against the total amount Nike owed to his friend’s company. In truth, Andam simply pocketed the proceeds and, as “Frank Little,” invoiced Nike for the full cost of the contracted services.
From September 2016 through December 2018, Andam diverted and embezzled nearly $1.5 million in Nike proceeds for his own use. In July 2018, Andam submitted a fake financial statement from his LLC in support of a residential mortgage loan application. The financial statement falsely reflected as revenue checks for $194,000 drawn on a bank account owned by his friend’s business. Andam forged his friend’s signature on one of the checks and withdrew much of that money without his friend’s knowledge.
On February 4, 2021, Andam was charged by criminal information with wire fraud, money laundering, and making false statements on a loan application.
Under the terms of Andam’s plea agreement, the U.S. Attorney’s Office will recommend a sentence of 37 months in federal prison when he is sentenced on July 12, 2021. Andam will ask for a sentence of not less than 24 months. He has also agreed to pay more than $1.6 million in restitution and forfeit $212,838 in criminally-derived proceeds.
This case was investigated by the FBI and IRS Criminal Investigation. It is being prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.
Former Bridgeport Police Chief Sentenced to Prison for Scheme to Rig City’s Police Chief SearchRead the Press Release
Audrey Strauss, United States Attorney for the Southern District of New York, Acting Under Authority Conferred by 28 U.S.C. § 515, announced that ARMANDO J. PEREZ, the former Chief of Police of the City of Bridgeport, Connecticut (the “City”), was sentenced today to 12 months and one day in prison for participating in a scheme to defraud the City by rigging the 2018 police chief examination in order to ensure he would be selected for the position, and to making false statements to federal agents in the course of the investigation. PEREZ previously pled guilty in Bridgeport federal court on October 5, 2020, before U.S. District Judge Kari A. Dooley, who also imposed today’s sentence.
U.S. Attorney Audrey Strauss said: “Former Chief Perez schemed to rig the search for a permanent police chief to ensure the position was awarded to him, and then he repeatedly lied to federal agents in order to conceal his conduct. Today’s sentence sends a strong message that public officials will be held accountable when they corruptly put their own self-interest above their duties to faithfully serve their citizens.”
According to the allegations contained in the Complaint, the Information, other court filings, statements made during court proceedings, and publicly available information:
The Scheme to Rig the City of Bridgeport’s Police Chief Exam
In or about 2018, PEREZ participated in a criminal scheme to rig the City’s search for a new Bridgeport Police Department (“BPD”) chief in 2018. During the course of this scheme, PEREZ – who was serving as the acting BPD chief at the time – conspired with David Dunn, who was at that time the City’s acting personnel director, to deceive the City by secretly rigging the supposedly independent search process for a new BPD chief to ensure that PEREZ was ranked as one of the top three candidates and could therefore be awarded a five-year contract to serve as the BPD chief.
More specifically, in or about February 2018, the City commenced a search to fill the position of permanent Chief of Police. Under the City’s Charter, the City was required to conduct an “open and competitive examination” to determine the top three scoring candidates for the position, from which the mayor could then choose. Dunn, in his role as the personnel director, oversaw the police chief examination process, and retained an outside consultant (“Consultant-1”) to assist with developing and carrying out the exam. PEREZ and Dunn then manipulated that examination process in multiple ways: Dunn stole confidential examination questions and related information developed by Consultant-1, and provided those materials to PEREZ, including by email; Dunn had Consultant-1 tailor the examination scoring criteria to favor PEREZ; PEREZ enlisted two BPD officers to secretly draft and write PEREZ’s written exam; and Dunn attempted to influence a panelist, tasked with ranking the candidates in the last stage of the exam, to ensure that PEREZ was scored as one of the top three candidates.
As a result of the scheme, the City was deceived into ranking PEREZ among the top three candidates, which rendered him eligible for the permanent police chief position. The mayor ultimately offered the position to PEREZ, and the City, under the assurance that PEREZ had been appointed in accordance with the City Charter, entered into a five-year contract with PEREZ, the terms of which included a payout to PEREZ for accrued leave.
PEREZ’s False Statements
PEREZ was voluntarily interviewed in connection with the FBI’s investigation. In an attempt to conceal his conduct, during those interviews he lied to FBI agents about facts material to the criminal investigation. PEREZ provided false and misleading information about the assistance Dunn and others had provided him in connection with the examination process, including his requests to a BPD officer to sneak into headquarters to retrieve stolen confidential information provided by Dunn.
* * *
In addition to the prison term, PEREZ, 64, of Trumbull, Connecticut, was sentenced to two years of supervised release, a fine in the amount of $7,500, and restitution of $299,407.
On October 5, 2020, Dunn pled guilty to his participation in the scheme to rig the City’s police chief search and to making false statements to federal investigators, and is scheduled to be sentenced by Judge Dooley tomorrow.
Ms. Strauss praised the outstanding work of the FBI and the Special Agents of the U.S. Attorney’s Office.
The case is being prosecuted by the Office’s Public Corruption Unit and White Plains Division. Assistant U.S. Attorneys Eli J. Mark and Jeffrey C. Coffman, and Assistant U.S. Attorney Jonathan N. Francis of the U.S. Attorney’s Office for the District of Connecticut, are in charge of the prosecution.
Federal Jury Convicts Boise Man of Attempted Coercion and Enticement of a MinorRead the Press Release
BOISE – After a three day jury trial, a federal jury sitting in Boise found Jordan Michael Drake, 33 of Boise, guilty of attempted coercion and enticement of a minor, and attempted use of interstate facilities to transmit information about a minor, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today. Chief U.S. District Judge David C. Nye presided over the trial, which began on April 5th, and concluded with the guilty verdicts on April 8th.
According to testimony and evidence presented at trial, Drake communicated online with an undercover detective posing as a 15-year-old girl. During the communications, Drake attempted to persuade, induce, and entice the minor into engaging in sexual activity with him and requested the minor’s address so that he could meet with the minor for sexual activity. Drake traveled to an address where he believed the minor resided, where law enforcement officers arrested him.
“Online predators who attempt to entice minors take advantage of our most precious resource, our children,” said Acting U.S. Attorney Gonzalez. “We are committed to prosecuting dangerous offenders who troll the internet looking to sexually exploit children, and we will continue to work together with our partners to identify these predators and their victims.”
The charge of attempted coercion and enticement of a minor carries a minimum of ten years and up to life in federal prison, a fine of up to $250,000, and at least five years and up to lifetime of supervised release. The charge of attempted use of interstate facilities to transmit information about a minor carries a term of up to five years of federal prison, a fine of up to $250,000, and at least five years and up to lifetime of supervised release. Drake will be required to register as a sex offender as a result of the conviction.
Sentencing is set for July 27, 2021, before Judge Nye at the federal courthouse in Boise.
The investigation was part of “Operation Butterball,” a joint state and federal undercover operation conducted in Ada County in November 2019 to identify individuals predisposed to meet minors for sexual contact. Participating agencies included Homeland Security Investigations (HSI), Idaho Internet Crimes Against Children Task Force, Idaho Attorney General’s Office, Idaho State Police, Meridian Police Department, United States Postal Inspection Service, ICE Enforcement and Removal Operations (ERO), Rupert Police Department, Jerome County Sheriff’s Office, Ada County Prosecutor’s Office, and the United States Attorney’s Office.
“The collaboration between ICAC and our federal law enforcement partners continues to yield results that help protect Idaho children from online predators,” Idaho Attorney General Lawrence Wasden said. “This conviction and the previous sentences stemming from this operation highlight the partnerships in place between local, state and federal law enforcement agencies that continue to put dangerous individuals in prison and keep them away from our young people.”
Drake is among five defendants arrested and charged in federal court as a result of Operation Butterball. Previously, the following defendants were sentenced in federal court:
- Christopher Niday, 54, of Summerville, Oregon, was sentenced on October 20, 2020, by Chief Judge Nye to four years in federal prison, followed by ten years of supervised release, for travel with the intent to engage in illicit sexual conduct.
- Jesse Kelly-Castillo, 24, of Boise was sentenced on December 9, 2020, by Chief Judge Nye to ten years in federal prison, followed by 15 years of supervised release, for attempted coercion and enticement of a minor.
- Maxwell Hennerley, 24, formerly of Boise, was sentenced on January 7, 2021, by U.S. District Judge B. Lynn Winmill to five years in federal prison, followed by five years of supervised release, for attempted use of interstate facilities to transmit information about a minor.
- Vern Leeroy Moore, 56, of Kuna, was sentenced on April 7, 2021, by Chief Judge Nye to five years in federal prison, followed by five years of supervised release, for attempted use of interstate facilities to transmit information about a minor.
These cases were brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Ex-L.A. Sheriff’s Deputy Sentenced to Seven Years in Federal Prison for Leading $2 Million Armed Robbery of Marijuana WarehouseRead the Press Release
LOS ANGELES – A former Los Angeles County Sheriff’s deputy was sentenced today to 84 months in federal prison for orchestrating and leading a $2 million armed robbery – staged as a legitimate law enforcement search – at a downtown Los Angeles warehouse where more than half a ton of marijuana and over $600,000 in cash was stolen.
Marc Antrim, 43, of South El Monte, who formerly was assigned to the LASD station in Temple City, was sentenced by United States District Judge Virginia A. Phillips, who said, “the seriousness of the crime could not be overstated.” The heist, which “sounded like a movie script,” was “tragic” for the victims and eroded “the public’s trust (in law enforcement),” the judge said.
Antrim pleaded guilty in March 2019 to a five-count information charging him with conspiracy to distribute marijuana, possession with intent to distribute marijuana, conspiracy to deprive rights under color of law, deprivation of rights under color of law, and brandishing a firearm in furtherance of a drug trafficking crime.
During the early morning hours of October 29, 2018, Antrim and his co-conspirators dressed as armed LASD deputies and approached the warehouse in an LASD Ford Explorer. Upon arrival, Antrim flashed his LASD badge and a fake search warrant to the security guards to gain entry to the warehouse. To perpetuate the ruse that they were legitimate law enforcement officers, Antrim and two fake deputies sported LASD clothing, wore duty belts, and carried firearms. One fake deputy also visibly carried a long gun to further intimidate the guards into submission.
At the beginning of the two-hour robbery, Antrim and his co-conspirators detained the three warehouse security guards in the cage of the LASD Ford Explorer. Soon after the guards were detained, a fourth man arrived at the warehouse in a large rental truck, and all four men began loading marijuana into the truck.
When Los Angeles Police Department officers legitimately responded to a call for service at the warehouse during the robbery, Antrim falsely told the LAPD officers that he was an LASD narcotics deputy conducting a legitimate search. To facilitate the sham, Antrim handed his phone to one of the LAPD officers so that the police officer could speak to someone on the phone claiming to be Antrim’s LASD sergeant. The individual on the phone was not Antrim’s sergeant, and Antrim did not have a legitimate search warrant for the warehouse.
After LAPD officers left the warehouse, other co-conspirators arrived and the robbery continued, allowing the fake law enforcement crew to steal even more marijuana and two large safes containing over half a million dollars in cash.
At the time of the robbery, Antrim was a patrol deputy assigned to the Temple City station, but he was not on duty, was not assigned to the department’s narcotics unit, was not a detective, and would not have had a legitimate reason to search a marijuana distribution warehouse in the City of Los Angeles.
Prosecutors have secured six convictions in this case for the co-conspirators who took part in the raid alongside Antrim.
Christopher Myung Kim, 31, of Walnut, a disgruntled former warehouse employee, is serving a 14-year federal prison sentence after being found guilty by a jury for his role in planning the heist and making off with $1.5 million in stolen marijuana after the raid. Antrim testified at Kim’s trial, which the judge credited as a significant reason to reduce Antrim’s sentence.
Kevin McBride, 45, of Glendora, and Eric Rodriguez, 35, of Adelanto, are serving federal prison sentences of six and nine years, respectively, after pleading guilty to felony charges in this case. In a related case, Antrim’s other co-conspirators, Matthew James Perez, 44, of Ontario, Daniel Aguilera, 33, of Los Angeles, and Jay Colby Sanford, 43, of Pomona, are serving sentences of six years’ imprisonment, two years’ imprisonment, and five years’ probation, respectively.
This case was investigated by the Drug Enforcement Administration; the FBI; and the Bureau of Alcohol, Tobacco, Firearms and Explosives. LASD’s Internal Criminal Investigations Bureau provided substantial assistance to the federal investigation.
Assistant United States Attorney Lindsey Greer Dotson of the Public Corruption and Civil Rights Section and Assistant United States Attorney Joseph D. Axelrad of the Violent and Organized Crime Section prosecuted this case.
Ellenville Felon Pleads Guilty to Drug Conspiracy and Firearm ChargesRead the Press Release
ALBANY, NEW YORK – Antonio Naveo, a/k/a “Gratto,” a/k/a “Green Eyes,” age 40, of Ellenville, New York, pled guilty today to drug and firearm charges, and admitted his leadership of a drug trafficking organization that distributed crack cocaine and fentanyl in Ulster County.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations (HSI), New York; and Ulster County Sheriff Juan Figueroa, whose office leads the Ulster Regional Gang Enforcement Narcotics Team (URGENT).
In connection with his plea, Naveo admitted that, between September 2017 and December 2018, he led an organization that trafficked crack cocaine and fentanyl from New York City and Pennsylvania, respectively, to Ellenville, for redistribution in various locations around the Rondout Valley. Naveo further admitted that he unlawfully possessed a firearm as a felon.
Naveo faces at least 10 years and up to life in prison, a term of supervised release of at least 5 years and up to life, and a maximum fine of $10 million, when he is sentenced by United States District Judge Mae A. D’Agostino on July 13, 2021. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The following defendants have also pled guilty in connection with the conspiracy, and were sentenced as follows:
Name
Age
Prison Term
Supervised Release Term
Iqwan Mandiville, aka “Qwan”
27
70 months
4 years
Randy Mandiville, aka “B-Murda”
31
42 months
6 years
Jennifer McCombs
49
24 months
3 years
The following defendants have also pled guilty in connection with the conspiracy, and face the following penalties:
Name
Age
Minimum
Maximum
Margaret Vandyke
58
10 years
Life
Luis Curet
35
5 years
40 years
Edwin Jorge
46
None
20 years
This case was investigated by HIS; the Ulster County Sheriff’s Office in conjunction with URGENT, an inter-agency taskforce targeting drug dealers and gang members in Ulster County; and the New York State Police, with assistance from the Village of Ellenville Police and the Ulster County District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Emmet J. O’Hanlon.